RBS has been badly burned by the financial downturn and its ill-judged acquisition of ABN Amro in 2007. The group, which laid off 3000 staff last month, is expected to post the largest loss in UK corporate history of between £7 billion and £8 billion for 2008 and has seen its share price take a pounding in recent weeks.

In a statement, the bank says it hopes to keep compulsory redundancies to a minimum and that no cuts would hit customer-facing staff.

RBS UK chief executive Alan Dickinson says: "We recognise that any news of this nature is unwelcome at any time. It is essential, however, that we consistently review our business to ensure that we are able to operate as efficiently as possible, especially in the current economic circumstances."

Earlier this week the bank was pilloried in the press for drawing up plans to pay out over £1 billion in bonuses to high-performing staff.

The latest round of cuts is likely to prove a further political embarrassment for the UK government, which holds a 68% stake in the ailing bank after bailing it out to the tune of £20 billion.