As part of a major restructuring initiative, The Royal Bank of Scotland Group plc (RBS - Free Report) is cutting almost a quarter of jobs in its investment banking unit in the United States. Per Reuters, citing sources with knowledge of the matter, the bank seeks to reduce almost 80-90 of its full-time staff in its head office in Stamford, CT.
According to one of the sources, the bank took the decision after consulting with various employee unions and representatives. The jobs likely to be affected include that of economists, rates traders and credit traders.
Notably, the lender employs nearly 400 people in the United States. The bank’s plan to cut U.S. jobs is part of a broader restructuring initiative to reduce 20-30% of the non-U.K. workforce within the NatWest Markets. Notably, the company is also considering cutting jobs across Asia.
A spokeswoman for NatWest Markets stated, “In line with the multi-year process announced in February, we continue to progress our plan to refocus NatWest Markets on activities which directly support the bank's core customers and on areas where we will have a more stable and consistent revenue stream.”
She added, “These are always difficult decisions, but we intend to make NWM a more sustainable business and will be supporting our colleagues through this process.”
The performance of Royal Bank of Scotland’s investment banking division has not been great. Investors have been disappointed by the division’s returns and market share. Hence, the bank needs to take the necessary action to be able to revive its investment banking operations.
Shares of Royal Bank of Scotland have lost 6.5% over the past three months against the industry’s rally of 4.5%.
Currently, the company carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the finance space are mentioned below.
AllianceBernstein Holding L.P.’s (AB - Free Report) earnings estimates for the current year have moved up 6.3% over the past 60 days. The company’s shares have gained 26.7% over the past three months. At present, it sports a Zacks Rank #1 (Strong Buy).
BlackRock, Inc.’s (BLK - Free Report) earnings estimates for the current year have moved 5% upward over the past 60 days. The stock has appreciated 19.2% over the past three months. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GAIN Capital Holdings’ (GCAP - Free Report) earnings estimates for 2020 have been raised significantly over the past 60 days. The company’s shares have gained 4.4% over the past three months. At present, it has a Zacks Rank #2.
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