Monday April 28, 10:24 AM
RBS to cut 7,000 jobs in ABN Amro shake-up: report
LONDON, April 28, 2008 (AFP) - Britain's Royal Bank of Scotland (LSE: 91ID.L - news) could axe around 7,000 jobs as it absorbs ABN Amro (Amsterdam: ABAGB.AS - news) 's investment bank into its global markets division, the Financial Times reported on Monday.
RBS (LSE: RBS.L - news) had said last week it would raise 12 billion pounds (15 billion euros, 24 billion dollars) from shareholders to shore up its finances after huge subprime-related writedowns and the blockbuster takeover of Dutch giant ABN Amro.
The FT, which did not cite its source, said Monday that RBS could shed about one quarter of its total combined workforce of 28,000 people.
RBS, the second largest bank in Britain, was under pressure to act more aggressively as the global markets downturn hits the financial industry, according to the daily business newspaper.
It (Frankfurt: A0MLX5 - news) added that the British bank would begin the integration this week with a consultation process that was expected to take between four and six weeks.
RBS acquired ABN's investment banking arm last year as part of a record-breaking consortium takeover that was aimed at breaking up the Dutch lender.
The successful ABN bid, pitched at 71 billion euros (100 billion dollars), was also backed by Belgian-Dutch group Fortis (Amsterdam: FOO.AS - news) and Spain's Banco Santander (SANB3.SA - news) .
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