Workers’ union Unite is “appalled” that 4,500 RBS staff in the UK are to lose their jobs. Logo courtesy of Unite.

The troubled Royal Bank of Scotland (RBS) faces further scrutiny as it announces up to 9,000 job losses in its Group Manufacturing Division.

In a statement to its investors, RBS said it has begun consulting Unite and other employee representatives about a business plan for its back office operations which could affect up to 9,000 Group Manufacturing roles globally, including 4,500 in the UK, over the next two years.

These latest cuts come on top of the 2,700 job losses in the UK corporate division already announced by RBS in Britain this year, and will include roles from Technology, Group Property, Operations (call centres) and Group Purchasing. However the bank stressed that the actual number of jobs lost is expected to be significantly lower than this.

The business plan, which involves a number of other cost-saving initiatives including moving to a common technology platform, will help RBS achieve its target of reducing annual costs by £2.5 billion within the next three years.

Workers’ unions have expressed their disappointment with the news. Rob MacGregor, Unite National Officer, said: “The news that 4,500 RBS staff in the UK are to lose their jobs is truly devastating. Unite is appalled that thousands of people, who form the backbone of the RBS operations, are to be made redundant. These employees are totally blameless for the current position which RBS is in, yet they are paying for the mistakes at the top of the bank.

“The government must defend jobs and act urgently to put in place a clear programme of action to protect jobs in this country. This bank, which is majority owned by the taxpayer must not be allowed to shed jobs and leave people on the dole.”

RBS will make voluntary redundancy arrangements available which may suit some of the staff affected by this announcement. RBS agrees with Unite that compulsory redundancies should be a last resort.

A redeployment programme has already identified 650 new job opportunities in the UK and the impact will also be reduced through natural turnover and less use of agency staff.

Stephen Hester, Chief Executive of RBS, said: “We want to be as open and transparent as possible and are announcing these plans at the earliest possible opportunity so that our employees can prepare for the future.”