The job cuts would affect more than half of the 19,000 staff at RBS’s investment bank.
The job cuts, combined with GBP1bn to GBP2bn restructuring costs, are considered to be the worst case scenario by the taxpayer-backed bank, according to Financial Times.
The bank has appointed Lazard to manage the potential disposal of divisions such as equities and corporate finance.
RBS will focus on its traditional UK retail and corporate financing bank activities once the restructuring is complete.
In August 2011, RBS revealed plans to slash up to 2,000 jobs from its investment banking unit in a bid to deliver more profits.
