Royal Bank of Scotland to cut 3,500 jobs

Royal Bank of Scotland (RBS) will cut around 3,500 jobs, although the bailed out lender's chief executive will be richer by another few million pounds with the bonus he will get for a year's work.

The move comes after the bank already shedding some 30,000 employees over the last two years, with 22,000 of them from the UK.

RBS, in which the UK government holds an 83 per cent stake after a series of bailouts worth £45 billion during the global financial crisis, today announced a major restructuring to its wholesale banking operations, including shedding a further 3,500 jobs in the UK and overseas over a three-year period.

The restructuring includes an exit from cash equities, corporate broking, equity capital markets, and mergers and acquisitions businesses, which will begin immediately, but may take up to three years to implement.

The Edinburgh, Scotland-based lender said that these businesses had income of £220 million in the nine months to September 2011 and are currently unprofitable.

Under the plan, RBS aims to cut the balance sheet of its former global banking and markets business by £120 billion ($184 billion) to £300 billion ($460 billion) in the next three years.