RBS to post worse ever loss sparking job fears

Royal Bank of Scotland (RBS) anticipate global job losses according to the UK banks new chief executive, adding that they are set to record the banks first annual loss in its history. Stephen Hester who is the new CEO will be taking over from Sir Goodwin within the next few weeks, sparked fears regarding job losses as he announced that he would be shaking up the group.

Hester proceeded in announcing that he would be raising £5 billion from the government and £15 billion from shareholders for his £20 billion extra capital plan. He then added that he would be making a thorough review RBS as a whole and that there would be “no sacred cows” on asset sales or underperforming division.

The new CEO of RBS then added: “There will be a number of areas of our business where customer volumes are less than they were before, and of course we need to adjust to that and that will mean, in some instances, cost cuts and job cuts.”

Although it won’t be until February 2009 when RBS reports its annual results for 2008 that Mr Hester will be in a position to act on the job issues, with the results making it clearer for Mr Hester to make his decisions.

Source: business.scotsman