British government-backed Royal Bank of Scotland today announced around 3,500 job losses over the next three years in a bid to downsize its investment banking arm.
The move at Global Banking and Markets (GBM), which has employees in Stoke, Manchester, Edinburgh and London, follows Government pressure for the 83 per cent state-owned bank to pull back from its ambitions to be a global investment player.
GBM, which employs 18,900 worldwide, deals with a range of financial services such as debt advice, equity trading andmergers and acquisitions. Its range of work with companies and governments spans from refinancing contracts for Anglian Water, Gatwick Airportand Tesco to debt issues for Finland.
The job losses come amid reports that John Hourican, the head of GBM who will continue to oversee the restructuring ofthe business, is in line to pick up £4 million in long-term incentive shares that he was awarded in 2009.
RBS' shares rose this morning in trading in London following details of the restructuring plan.
PA