Royal Bank of Scotland to cut 2600 British jobs

Patrick Hosking, Financial Editor & ,}

Royal Bank of Scotland is to cut 2,600 British jobs, bringing the sum series of employees the state-owned lender has strew given the promissory note predicament began to 22,600.

RBS pronounced 2,000 jobs would go from the Churchill and Direct Line branded insurance multiplication and 600 will be strew from the sell promissory note arm.

The uninformed winnow is the initial vital pursuit slicing plan by any association given the election. Around 16,200 staff have been lost in the UK, though RBS has kept compulsory redundancies to only one in 4 of departures.

RBS pronounced the concessions to the European Commission required to validate for UK state assist were obliged for accelerating the pursuit losses.

RBS has to sell the word arm by 2013 and has to ready it for sale in the meantime.

It will additionally need fewer people in the sell promissory note head bureau since it has been systematic to sell 316 branches as piece of the EC settlement.

RBS, that is 84 per cent owned by the Government, affianced last year to identify 2.5 billion a year in cost savings.

RBS has nonetheless to collect where the pursuit cuts will fall, but the main practice centres in word are in Bromley in Kent, Glasgow, Leeds and Bristol.

In sell banking, RBSs offices in London and Edinburgh see expected to bear the brunt of the pursuit reductions.

RBS pennyless the headlines to influenced staff this afternoon.

Stephen Hester warned last week there would be some-more pursuit waste to come.

An RBS mouthpiece pronounced today, We are operative tough to reconstruct RBS in sequence to repay taxpayers for their await and carrying to cut jobs is the majority difficult piece of this process. We will do all probable to keep compulsory excess to an comprehensive minimum. So far the pursuit waste weve announced to date have resulted in fewer than one in 4 people being done compulsorily redundant.

RBS shares surged by twelve per cent to 51p among a ubiquitous upgrading of bank shares in the arise of agreement on an EU monetary fortitude package.