Troubled banking institution Royal Bank of Scotland, in an effort to cut jobs by 2,000, recently announced its intention to close one of its personal and commercial insurance offices in Manchester.
RBS said the offices, located on Hardman Boulevard, Spinningfields, would shut its doors in 2011’s third quarter, relocating its 60 staffmembers to nearby Quay Street to its Direct Line offices, bringing the number of employees working at that particular location to 700. The Spinningfields office deals with the NIG brand for RBS, which provides personal and business insurance to UK customers.
The bank has announced plans to close 14 of its 27 insurance offices throughout England, Wales, and Scotland.
Glasgow will see two offices shuttered, which will impact in excess of 640 employees, while other locations affected by the closures will include Cardiff, Farnham, Peterborough, Ipswitch, Birmingham, and Bristol.
RBS, which is partly nationalised due to the massive taxpayer bailout during the banking crisis, was ordered to sell off much of its assets as a punitive measure instituted by the EU. The bank has to comply with the order by 2013.
RBS said that it will close the offices in question over the following three years, though some closures will take place before the end of the current year. Last May, the bank – which is 83 per cent government owned – announced that its insurance division would shed 2,000 jobs, which is inclusive of Direct Line and the Churchill, Green Flag, and Privilege firms. Combined RBS employs approximately 16,000 staff across all companies.
RBS released a statement regarding the closures and jobs losses, saying that the decision made by the EU that requires the sale of its insurance business has necessitated an acceleration in its plans for cost cutting measures, and as a result the highly difficult decision to cut jobs was made.
At the present stage, RBS continued, it is simply too early to announce with any authority how many reductions in employment status these cost cutting measures will result in, but the bank was quick to offer support in the form of keeping compulsory redundancy as low as possible while offering opportunities for redeployment whenever they could.