Projo Biz Blog

Royal Bank of Scotland Group Plc, the owner of Providence-based Citizens Financial Group, plans to eliminate an additional 9,000 jobs worldwide, or five percent of the workforce, as it seeks to repay a bailout from the United Kingdom.

The job cuts in back office operations, including 4,500 in the United Kingdom, are part of a plan to reduce costs by $3.7 billion over three years, the Edinburgh-based bank said Tuesday in a statement. The actual number of jobs lost may be "significantly lower" because of plans to shift employees into new positions, the bank said.

"We have set a new strategy for RBS to restore the Bank to standalone strength as soon as practicable," Chief Executive Officer Stephen Hester said. "Unfortunately, that means taking difficult decisions about jobs."

The company did not disclose how the cuts would affect Citizens Financial Group.

The Royal Bank said the cost savings will help repay a United Kingdom taxpayer bailout as quickly as possible. The government increased its stake in the bank to 70 percent today after investors shunned a rights offering.

The cuts announced today are in addition to 2,700 previously discussed, a bank spokesman said.

 Tags  Citizens Financial Group Providence RI Royal Bank of Scotland

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