Tuesday, 20 December 2011
Financial job prospects in the City of London have been dealt a blow with the news that the Royal Bank of Scotland's investment banking division is to be significantly scaled back, with the loss of many banking jobs.
The cuts to the operations of the taxpayer aided bank were outlined by the Chancellor of the Exchequer, George Osborne, who said the changes were a response to the report by Sir John Vickers on the banking industry.
Osborne told MPs that there would be "further significant reductions" made to the division of the bank, which has already been significantly cut back since its 2008 government bailout, when it employed more than 25,000 finance professionals.
"We believe RBS's future is as a major UK bank, with the majority of its business in the UK and in personal, SME and corporate banking," he explained. "Investment banking will continue to support RBS's corporate lending business but RBS will make further significant reductions in the investment bank, scaling back riskier activities that are heavy users of capital or funding."
It is thought that the headcount currently stands at 18,000 people. Financial analyst, Ian Gordon, from Evolution Securities, estimated that the new staff reduction is likely to see at least 5,000 people lose their jobs.
The clamour for City positions that the cuts will prompt will make it even more crucial for jobseekers to make use of the most efficient and streamlined recruitment facilities, to try to get ahead of the competition.