Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

RBS to cut IT contractor pay by 10 percent

11,000 temporary staff across all departments will be affected

Article comments

Royal Bank of Scotland is to reduce the pay of its IT contractors by 10 percent as part of ongoing cost cutting moves.

The majority of the bank's temporary staff across all departmerns - approximately 11,000 in total according to most recent figures - will have their pay cut from the end of the month after receiving a letter from the bank last week outlining plans. The cuts will impact all IT contract workers in various roles across the organisation, the bank confirmed.

The cuts will target all temporary workers paid more than £250 a day, although those hired through consultants will be exempt.

"We continually keep costs under review, in reaching this decision we have taken into consideration market day rates and those across the banking industry," said a bank spokesperson.

The announcement comes after Barclays put in place similar measures earlier this month, with IT contractors told they would receive a 10 percent pay cut or face losing their job.

Both banks are in the midst of major cost cutting programmes. RBS, which is 81 percent owned by the government, is attempting to make £1 billion savings this year alone and £5 billion by 2017. The cost reduction is part of a major restructuring that is expected to see the bank reduce its headcount by 30,000 in the coming years.

Meanwhile, Barclays is in the process of carrying out is 'Transform' programme, which is designed to help the bank reduce its net operating expenditure by £1.7 billion to £16.8 billion by 2015.

The bank announced earlier this year that it plans to cut between 10,000 and 12,000 jobs this year, including 7,000 in the UK. This will include 1,700 frontline roles which will go as the bank increases service automation.


More from Techworld

More relevant IT news


Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *