Royal Bank of Scotland is reportedly to shrink its investment banking and international operations and lay off up to a quarter of its workers.
Sources have told news organisations that the part-nationalised bank has given in to demands from British politicians that it focus on lending to households and businesses in the UK.
The price for that will be 30,000 people losing their jobs, though that total does include previously announced cuts of 23,000 as it sells its US retail business Citizens and a UK retail business, Williams & Glyn.
RBS is over 80 percent owned by the British government after a 45 billion pound taxpayer bailout in 2008 to stop it collapsing.
The company’s shares rose as investors welcomed the staff cut reports, which could help lower RBS’ costs.
“The government sell-off of Royal Bank feels a little way off but if this is as radical as we think it’s going to be, then I think it’ll help in that process,” said Numis analyst Mike Trippitt.
Former RBS CEO Stephen Hester clashed with politicians over their desire to see RBS’s investment bank scaled back and this contributed to his departure last year.
Ross McEwan, who replaced him, will unveil the outcome of a strategic review of the business alongside the bank’s full-year results next Thursday.