Wednesday Mar 14, 201203:00 AM GMT
UK state-owned banks axe 2,000 jobs
Wed Mar 14, 2012 2:58AM
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The job cuts come as recent revelations showed key British bankers are to be rewarded with multi-million pound shares.

Two of Britain’s state-owned banks have axed over 2,000 jobs in a move denounced as ‘truly brutal’ by the country’s largest trade union, which has demanded the government to “intervene.”


Royal Bank of Scotland (RBS), 82% state-owned, and Lloyds Banking Group, 40% owned by the British government, have announced that they would cut over 2,000 UK jobs, reported the Financial Times on Tuesday.

Lloyds announced it would cut 1,600 positions as part of a broader plan aimed at cutting 15,000 jobs. The positions included roles from Lloyds’ group operations, wholesale and insurance divisions.

Furthermore, RBS announced that it was cutting 464 positions as it plans to shut down sites in Bristol and Farnborough and limit its activities in London, Leeds, and Edinburgh.

Britain’s largest trade union, Unite, severely criticised the job cuts describing them as “truly brutal.” Furthermore, Unite called upon the British government to intervene and “demand answers” from the state-funded banks.

“How can there be any justification for the government not intervening as these much needed jobs are lost from our struggling economy?” said national officer at Unite, David Fleming, in a letter to UKFI, which manages the state’s bank holdings. However, UKFI refused to make any comments on the job cuts.

The job cuts come as recent revelations showed key British bankers are to be rewarded with multi-million pound shares.

Chief executive of RBS Stephen Hester’s latest incentive plan could be worth £3.6m while RBS’s investment banking head, John Hourican, would receive shares worth £4.2m.

Moreover, Lloyds Banking Group's new executive, Antonio Horta-Osorio is to be awarded £3.3m worth of shares and the bank’s highest-paid member of staff, whose name was not revealed, received £2.8m last year.

ISH/HN/HE
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