RBS said planning to make 'very substantial' cost reductions

Pulling Hair

Preparing the axe.

The new head of Royal Bank of Scotland (RBS) is preparing to take another axe to the lender's cost-base in a move which could herald thousands more job cuts.

Sky News reports that that Ross McEwan is working on the plans, to be announced alongside the taxpayer-backed bank's annual results in six weeks' time, under the codename Project Cook.

The name is understood to be a reference to Captain James Cook, the English explorer who sailed along the coast of Australia in 1770, and is a nod to the RBS CEO's success in cutting costs at Commonwealth Bank of Australia, where he ran its retail operations for five years.

McEwan's plans for RBS will not be finalised until next month, when he will announce the details to the City, but he has told colleagues that he expects 'very substantial' cost cuts to be identified as part of his review.

The bank's workforce is already one-quarter smaller than the 161,000 people who were employed by it when taxpayers injected £45.5bn to rescue it in 2008.

To access the complete Sky News article hit the link below:

'Project Cook' Signals Huge RBS Cost Cuts

Treasury Takes Step Towards £19bn Lloyds Sale

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