The Boston Globe reports the Royal Bank of Scotland Group plans to cut 4,800 jobs in response to “volatile markets and new regulations in the United Kingdom.” RBS is the parent company of Citizens Bank. While the report doesn’t mention New Hampshire specifically, it appears the layoffs will largely be concentrated in Europe:
“RBS spokesman Michael Strachan said the restructing won’t have any direct impact on Citizens, the second largest retail bank in Massachusetts. And since RBS has only limited other operations in the state, the layoffs would likely affect few, if any, local workers.
The company said the bulk of the cuts, affecting 3,500 workers will come in its investment bank where it shedding operations. RBS said it plans to sell or close the cash equities, mergers advisory, corporate broking and equity capital markets operations, and is in talks with ‘a number of potential buyers’ for the operations.
About a further 1,300 jobs are to be eliminated in other areas, including Ulster Bank and corporate lending, said a person with knowledge of the matter.”
The Globe reports that RBS is contracting or off-loading unprofitable divisions after a long period of aggressive expansion. Like a number of European banks, RBS is having to retool its business model in the wake of the Eurozone crisis.