The Royal Bank of Scotland is to axe up to 500 jobs in its investment banking arm, Sky News has learnt. Skip related content
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City editor Mark Kleinman says RBS has already informed staff in its global banking and markets division about the proposed cuts.
Most of the jobs under threat are back-office roles in the UK.
The move comes after the part-nationalised bank announced 3,500 positions would go earlier this month.
This followed the loss of 9,000 jobs in the division announced last year.
In a statement RBS said: "We continue to make efficiencies across our business to ensure that we have the right people and resources in place to meet our client needs.
"We will do all we can to support our staff, offer redeployment opportunities wherever possible and keep compulsory redundancies to an absolute minimum."
Kleinman says other big investment banks are likely to follow suit unless their fortunes improve.
"RBS, led by Stephen Hester, its chief executive, isn't the first of the major investment banks to cut jobs in the wake of a slowdown in revenues," he said.
"Earlier in the summer, Barclays Capital also announced that it was cutting several hundred administrative jobs.
"Many of the other large investment banks are likely to follow suit without a sustained upturn in revenue-generating corporate activity."
New research has found that Britain is the worst place to live in Europe.
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