Royal Bank of Scotland Group (RBS) is planning to close riskier investment banking business in US and shrink in large parts of Asia, a move that is expected scale down the bank’s staff headcount by at least 30,000 over the next three to five years, the Financial Times reported.
According to the publication, RBS will announce next week its withdrawal from many of its riskier investment banking activities alongside a plan to offload much of its international business.
The bank, which currently employs 120,000 staff, is expected to refocus on three groups that include retail customers, small businesses and larger companies, people familiar with the plans told the FT.
The restructuring is part of a range of cost-cutting measures and disposals adopted by the bank’s CEO Ross McEwan.
RBS, which was bailed out by the British government in 2008, is under pressure from the regulator to strengthen its balance sheet after its core tier one capital ratio fell to between 8.1% and 8.4% at the end of 2013.
RBS declined to comment on the story.