RBS to shed thousands of investment bank jobs-FT

LONDON Wed Aug 3, 2011 6:31pm EDT

LONDON Aug 3 (Reuters) - Royal Bank of Scotland (RBS.L) plans to shed as many as 2,000 jobs from its investment banking unit, the Financial Times reported on Thursday.

The newspaper cited John Hourican, head of RBS's global banking and markets division, as saying a smaller, more focused business would deliver more stable profits.

An RBS spokesman told Reuters that Chief Executive Stephen Hester had already made clear that the bank would cut more jobs, including at its global banking and markets (GBM) investment bank arm, but that the bulk of its cuts had already been made.

The spokesman declined to say if a specific number of cuts was planned.

RBS, like other banking groups with sizable investment banks, is reshaping its business in response to sluggish markets and tighter regulation.

RBS has cut 27,500 jobs since the financial crisis, including thousands in its global banking and markets unit. It has scaled back its investment banking business, reducing its client base to 5,000 from 26,000 before the financial crisis and exiting 12 countries.

Other banks are also shedding jobs. On Monday, HSBC (HSBA.L) said it would cut 30,000 jobs [ID:nL3E7J11E] and on Tuesday Rand Barclays (BARC.L) said it would cut about 3,000 jobs this year. [ID:nL6E7J205M] [ID:nL6E7J11KC] (Reporting by Stephen Mangan and Steven Slater)

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