Royal Bank of Scotland Group (LON:RBS) plans to cut 334 jobs and move more jobs to India, Reuters has reported. The news comes as the lender continues to struggle to boost profitability following its taxpayer-funded bailout during the financial crisis.
RBS’ share price has fallen into the red in today’s session, having lost 0.79 percent to 264.50p as of 13:21 BST, underperforming the benchmark FTSE 100 index which has gained ground and is currently 0.70 percent better off at 7,351.88 points. The group’s shares have added just under a quarter to their value over the past year, and are up by some 17 percent in the year-to-date.
Reuters quoted Unite union as saying today that RBS was planning to shed 334 jobs and offshore more jobs to India, with the cuts expected within technology in areas including Finance Solutions, Risk Solutions, NatWest Markets Technology and Digital Engineering Services. The union labelled the cuts as ‘unjustified’.
“Unite cannot understand how RBS, which continues to be taxpayer backed, can justify hundreds more staff cuts and continue transferring important work out of the country,” Rob MacGregor, Unite national officer, said, as quoted by the newswire, adding that the union had “called on RBS to halt the offshoring announcements and impose a moratorium on the offshoring of jobs”.
The news comes with RBS continuing to struggle to improve its performance in the wake of its state-funded bailout. Last month, the lender revealed that had returned to profit in the first three months of the year.
The 20 analysts offering 12-month price targets for RBS for the Financial Times have a median target of 240.00p, with a high estimate of 303.00p and a low estimate of 190.00p. As of May 5, the consensus forecast amongst 24 polled investment analysts covering the blue-chip bank advises investors to hold their position in the company.