Royal Bank of Scotland Announces 640 Job Cuts While Hewlett-Packard Creates 700 New Positions

Strategic Insights -

Scotland's Royal Bank of Scotland is set to cut 640 jobs at its Direct Line insurance call centre in Glasgow, with up to 400 workers facing the axe and 240 eventually redeployed to other centres in the city. The job cuts are part of a larger restructuring effort announced three months ago, which aims to slash 2,000 jobs from the bank's insurance division. Meanwhile, computer giant Hewlett-Packard (HP) has announced plans to create 700 new posts at its facility in Erskine, Renfrewshire, with the help of £7 million in Scottish Government funding.

Key Takeaways:

  • 640 Royal Bank of Scotland workers at the Direct Line insurance call centre in Glasgow face job cuts, with up to 400 expected to lose their positions and 240 redeployed to other centres.
  • The job cuts are part of a larger restructuring effort announced three months ago, which aims to slash 2,000 jobs from the bank's insurance division.
  • Hewlett-Packard (HP) has announced plans to create 700 new posts at its facility in Erskine, Renfrewshire, with the help of £7 million in Scottish Government funding.
  • HP's new jobs will be created as part of the company's IT service hub at its plant, following a cut of 700 manufacturing roles last year, which were outsourced to the Czech Republic.
  • RBS's Direct Line insurance call centre staff are expected to be told the news of the job cuts in a meeting with bosses at the Radisson hotel in Glasgow.
  • An RBS spokesman stated that the bank has a commitment to staff to always inform them first of any changes.

Statistics:

  • 640 Royal Bank of Scotland workers face job cuts at the Direct Line insurance call centre in Glasgow.
  • $1.14 billion in profits were announced by RBS last month, following a three-month restructuring announcement.
  • 2,000 jobs are expected to be cut from RBS's insurance division as part of the restructuring effort.
  • 700 manufacturing roles were cut by HP last year and outsourced to the Czech Republic.
  • £7 million in Scottish Government funding will be used to create 700 new jobs at HP's facility in Erskine, Renfrewshire.
  • £1 billion was made by HP between April and July.

Sources:

  • "The Sun" (September, [no date specified])
  • An RBS spokesman
  • Glasgow Kelvin MSP Pauline McNeil
  • HP's head of strategy, Marc Waters
  • First Minister Alex Salmond
  • Scottish Government