RBS to cut 3,500 jobs

The Royal Bank of Scotland (RBS) today announced it is planning to cut 3,500 jobs as part of a reorganisation of its investment bank.

The bank - 83% owned by the taxpayer - will be split between its UK and international offices.

News of today's cuts comes on top of 2,000 cuts announced earlier. As many as 10,000 job losses had been forecast.

RBS's 'wholesale banking' division, which provides services to large clients including investment banking services, will be split into separate "markets" and "international banking" divisions.

The moves follow calls from Chancellor George Osborne last month for the bank to shrink its global banking and markets division to become less risky.

Osborne said on Wednesday: "I certainly have been clear in my view that RBS should scale down its global investment banking activities and become a much more UK - and Europe - focused retail bank, where the investment banking primarily supports the retail bank."