Jobs at risk as RBS prepares to sell one-fifth of business

by Gill Montia

Story link: Jobs at risk as RBS prepares to sell one-fifth of business

The Royal Bank of Scotland (RBS) is to sell at least one-fifth of its business in efforts to protect profit making elements of the group from heavy writedowns.

Chief executive, Stephen Hester, has announced plans to separate out non-core parts of the business, including those with toxic debt.

The bank, which is now 68% state owned, will be reporting results for 2008 later this week, when it is expected to reveal details of a recovery plan alongside estimated losses and writedowns for last year of around £28 billion.

So far RBS has identified between £200 billion and £300 billion worth of assets as non-core and the forthcoming disposals could see the group rid itself of some American operations and the Asian business acquired as part of ABN Amro, in 2007.

The restructure is likely to cost jobs, with forecasts of a headcount reduction of between 10% and 20% worldwide.

According to a report in the Sunday Times, around 10,000 job losses are expected in the UK.