RBS sheds Asia jobs, bosses to leave too

By Cathy Chan  |   2008-12-20  |     NEWSPAPER EDITION

ROYAL Bank of Scotland Group Plc, 58 percent owned by the United Kingdom government after a bailout, cut more than a third of Asia investment-banking jobs, including that of one of its most senior executives in the region, two people familiar with the matter said.

About 70 people lost their jobs this week, the people said, asking not to be identified because there has been no public announcement.

Richard Orders, 54, is stepping down as Asia-Pacific head of corporate sectors and advisory, and told his staff yesterday that he'll stay for several months to work on unfinished projects, they said.

The Edinburgh-based bank is reducing its global workforce to pare costs after being forced to accept a 20-billion-pound (US$30 billion) bailout from the UK government.

RBS joins HSBC Holdings Plc, Goldman Sachs Group Inc and Deutsche Bank AG in eliminating jobs in Asia as global losses and writedowns stemming from the credit seizure surpass US$1 trillion.

"The landscape has changed and we must change with it, which includes making sure that our global business is the right size to reflect the volume of business we are currently doing," said Hui Yukmin, a Hong Kong-based spokeswoman at the bank.

RBS departures also include Claude Illy, with 14 years' service, and Kevin Lee, Asia co-heads of energy and resources. John Moore, 38, who headed Southeast Asia corporate finance, will exit after spending 11 years with the firm.

The job cuts this week were focused on merger advisory, corporate finance, industry teams and local coverage bankers.