Monday April 28, 02:24 PM
RBS signals job cuts in wake of ABN Amro takeover
LONDON (AFP) - Britain's Royal Bank of Scotland (LSE: 91ID.L - news) said Monday that there will be job losses over the next two years following the recent blockbuster takeover of Dutch lender ABN Amro (Amsterdam: ABAGB.AS - news) .
Britain's second biggest bank made the announcement after the Financial Times reported that RBS (LSE: RBS.L - news) could axe around 7,000 jobs as it absorbs ABN Amro's investment bank into its global markets division.
RBS 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 its part in the takeover of ABN Amro.
"Since the acquisition of ABN Amro we have consistently said that as we brought our two wholesale banking businesses together there would be job losses over the course of the next two years," RBS said in a statement on Monday.
"This is unfortunate but inevitable.
"In light of current conditions in some parts of the global credit markets, we are also looking at the appropriate size for our businesses affected by this downturn."
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.
The British bank was under pressure to act more aggressively as the global markets downturn hits the financial industry, according to the daily business newspaper.
The newspaper added that the bank would begin the ABN Amro 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 October 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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