Employment massacre in the City as RBS cuts 3000 adrift
While many in the City knew this day was coming, news that Royal Bank of Scotland is in the process of finalising 3000 job cuts across the group has brought a reality check to many in the UK financial sector. While it is not sure exactly where the staff reductions will be focused it seems as though the investment banking business is the main target.
This comes a time when Citigroup has also announced plans to reduce its workforce by up to 10,000 worldwide. There are currently 12,000 Citigroup staff in the UK and it seems inevitable that many will see their jobs come under threat. This is yet further evidence that the UK investment banking sector is struggling to make ends meet and is feeling the pressure on many sides.
Depending upon who you speak to it seems as though these initial moves are just the tip of the iceberg and we could see unemployment in the City along the same lines as that seen after the 1987 crash. If that were the case then there are literally tens of thousands of more jobs on the line which will add further numbers to the UK unemployment figure and place more pressure on the Bank of England and the government.
Share this..
Related stories
Unemployment in the UK hits 1.92 million
The government has today announced unemployment figures for November last year which shows a rise to 1.92 million. This is the highest total since September 1997 and many experts are forecasting a substantial increase over the next 12 months. While there is some debate as to how high the unemployment figure will go there are some suggesting it could peak at around 3.2 million during 2009/10.
...
Has the recovery in the UK banking sector run its course?
News that Qatar Holdings will be reducing its significant shareholding in Barclays bank has prompted many investors and analysts to consider whether the recovery in the UK banking sector has run its course for the time being. There is no doubt that the sector is well and truly over the worst but whether we will see the sector continue to move ahead in the short to medium term is very much open to...
Read MoreAre we set to see a revival of the Labour left?
Ken Livingstone has returned to the political arena with a suggestion that now is the time for a revival of the left-wing Labour Party. Livingstone has for some time been a thorn in the side of "new Labour" and it now appears as though he has spotted a potential niche in the political arena. Gordon Brown's firm embracement of capitalism in his early years in the Treasury has suddenly made way for...
Read MoreIs the UK property sector really starting to recover?
The encouraging news from UK housebuilding giant Persimmon caught many in the market by surprise, with the confirmation that further land bank write-downs are not required perhaps the most positive note. However, while the group appears to have called the bottom of the market there was no indication as to when UK house prices will start to rise again and when hundreds of thousands of UK homeowners...
Read MoreHas consumer confidence bottomed out?
News that consumer confidence appears to have picked up over the last month has been assumed by many to signal the end of the consumer confidence crisis. However, the consumer confidence figures reflect the views by many that now is the time to make a substantial purchase but confidence about the economy and the outlook for next year is still falling. Whether consumers are now wrapped up in the fe...
Read More