Business

Government-owned RBS to shed a further 500 posts

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Image caption RBS has returned to profit after reporting a record £24.1bn loss in 2008

Royal Bank of Scotland, which is more than 80% government-owned, is planning to cut another 500 jobs, mostly in the investment banking division in London.

The move comes weeks after the bank said it was cutting 3,500 jobs from its UK technical and back office division.

In a statement RBS said it had "made efficiencies" in response "to changing market conditions".

An estimated 27,000 job losses have been announced since RBS unveiled its restructuring plan early in 2009.

The bank said the latest move would ensure it had "the right people and resources in place to meet our client needs".

It added: "We will do all we can to support our staff, offer redeployment opportunities wherever possible, and keep compulsory redundancies to an absolute minimum."

It is understood that 30,000 jobs will eventually go.

The bank has been told by the European Commission to reduce its number of branches in order to safeguard competition concerns after it was bailed out by the UK government during the financial crisis.

The government still holds an 84% stake in the bank.

RBS reported a loss of £24.1bn for 2008, the largest annual loss in UK corporate history.

However, it has since returned to profit. In the first half of 2010 it made £1.14bn.

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