Royal Bank of Scotland (RBS) plans to cut 2,000 jobs over the next 18 months and it is very likely that IT workers will be affected.
The news comes as the bank plans to concentrate its resources on its 'strongest products and services', whilst de-emphasising some of the more complex structure products that are 'capital intensive or costly to run'.
It also emerged this week that chief executive of RBS, Stephen Hester, is to step down from his position.
The latest announcement means that 41,000 jobs have been cut at RBS since 2008.
Sources at the bank told Computerworld UK that both front and back office functions will experience losses over the next year and a half, and it is very likely that IT will be impacted.
"Throughout the review process we have had to make tough decisions about the number of people needed to make this new strategy a success. Regrettably, there will be job losses in areas that we are exiting or streamlining and it may take some time before we can provide clarity to those affected," said co-CEOs of RBS Markets, Pieter Nielsen and Suneel Kamlani.
"We are confident that the decisions we have taken will create a successful and sustainable global business, focused on serving our clients well in the areas where we excel."
They added: "Thank you for all your hard work. We greatly appreciate your support and commitment to the continued success of Markets."