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RBS job cuts - IOM position uncertain

There is no word yet on how plans to cut up to 4,500 Royal Bank of Scotland jobs in the United Kingdom will affect the Isle of Man.

Reports in the British media today say 9,000 positions are to go worldwide over the next two years, in the so-called group manufacturing division.

Half the redundancies will be in the UK, although RBS says the actual number of jobs lost is expected to be significantly lower than the quoted figure.

It's part of a plan to save £2.5 billion over the next three years, after £20 billion of taxpayers' money was used to fund a bailout last year.

Chief executive of RBS Stephen Hester wants the British government, which now owns 70% of the bank, to be able to realise value from its investment.

He says to achieve this RBS needs to cut costs, which will mean taking difficult decisions about jobs and many other cost reduction actions.

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