NatWest Cuts 1,000 Jobs Despite Reporting 2.23 Billion Pound Profit
NatWest posted a quarterly profit and grew its overall headcount, but still cut 1,000 jobs to reshape its workforce for the future.
Layoffs · Source: Dow Jones via Morningstar
What happened
NatWest Group reported an operating pre-tax profit of 2.23 billion pounds for the third quarter. This is a nearly 2 percent increase from the same period last year. The bank also saw its net interest income grow by almost 9 percent to 3.56 billion pounds. Analysts had expected slightly lower operating profits.
Despite these strong financial results, the bank cut 1,000 full-time jobs during the same quarter. This brings the total number of job cuts at the bank to 1,400 so far this year. Chief Executive Paul Thwaite said the underlying shape of the workforce is changing quite a bit. He noted that the bank needs the right skills and the right individuals in the right roles.
Surprisingly, the bank's overall headcount actually increased by about 800 people this year. This happened because NatWest acquired a wealth manager called Evelyn Partners, which added 2,200 staff to the company. The bank also reported 420 million pounds in cost savings as it invests heavily in new technology and artificial intelligence tools.
By the numbers
- 2.23 billion pounds — NatWest's operating pre-tax profit for the third quarter
- 1,000 — Full-time jobs cut by the bank in the third quarter
- 800 — Net increase in total headcount this year due to an acquisition
- 420 million pounds — Cost savings achieved by the bank through its efficiency drive
Why it matters
A profitable company is no longer a guarantee of job security. Banks and tech companies are actively cutting roles that do not fit their future plans, even when they are reporting strong profits. Job seekers need to target roles that align with a company's new technology investments, like artificial intelligence, rather than legacy operations. When a CEO talks about efficiency drives, it usually means older roles are at risk.
Companies are replacing old roles through acquisitions and technology upgrades rather than traditional hiring. NatWest cut 1,000 jobs but added 2,200 through an acquisition, showing that hiring budgets still exist for specific business goals. This means overall headcount can grow while individual departments face severe cuts. You have to look at the department level to understand if a company is actually hiring people with your background.
Who this hits
Corporate employees
Workers in legacy roles face higher risk as companies pivot to new technologies. NatWest is explicitly changing the shape of its workforce to focus on artificial intelligence and operational efficiency.
Job seekers targeting profitable companies
You cannot assume a company is safe just because it reports strong earnings. You must research whether the specific team or department you are joining is part of the company's future growth plan.
Wealth management professionals
This sector is seeing active growth through corporate acquisitions. NatWest absorbed 2,200 employees by buying Evelyn Partners, showing strong demand in this specific financial area.
What to do this week
- Look at a company's recent acquisitions to understand where they are actually growing and spending money.
- Check earnings call transcripts to see what skills the CEO says the company needs for the future.
- Update your resume to highlight experience with efficiency tools and artificial intelligence, as companies are actively funding these areas.
- Stop relying on overall company profitability as a sign of job security and start researching the health of specific departments.
See who's hiring right now on GiraffyReach
My take
I always tell job seekers that a company's profit does not protect your job. Your safety depends entirely on how much demand there is for your specific role. If your skills do not match the company's future plans, you can be cut even in a record quarter. Focus on staying relevant, not just finding a profitable employer.