REUTERS/Eric Miller
The Financial Times reports that the bank is cutting back office and middle office positions, including support and technology, as it tries to shrink the division. Staff were informed of the cuts today.
While jobs are going in the UK, 300 investment bank support roles are being created in India, where it's cheaper to employ staff, resulting in an overall headcount reduction of 148.
The cuts are part of RBS CEO Ross McEwan's strategy to reduce the size of the lender's investment bank and instead focus on core banking activity in the UK, Ireland, and Western Europe. BI understands that RBS's Indian office, where some investment bank back and middle office roles are being relocated, could face cuts in the future as the investment bank continues to shrink.
A spokesperson for RBS emailed BI the following statement:
As part of RBS's drive to be a stronger, simpler and fairer bank, we have been restructuring our Corporate & Institutional Bank, as well as reducing its size, to focus on our core customers and products.
As this process continues our frontline staff need a simpler, clearer, more efficient relationship with our middle and back office functions to better serve customers, so we're reshaping our services business accordingly. Unfortunately the changes will result in some job losses.
We realise how difficult this news is for our staff and we are working to support those affected. We will redeploy staff into new roles wherever possible.
Some roles will reportedly be redeployed. The restructure comes just a day after it came out that RBS is axing 550 investment advisors, replacing much of their service with online forms.
RBS has lost a cumulative £50 billion since the financial crisis, recently announcing a £2 billion loss for 2015. The bank required a £42 billion bailout during the crisis and is still majority taxpayer owned.
Business Insider has contacted RBS for comment and will update when we hear back.