“RBS has begun a process of consultation with staff in the UK regarding a restructuring of its Retail Banking division that will result in losses of approximately 3,700 jobs,” the state-owned banking group said in a statement.

The announcement comes as the British government is on Tuesday set to lay out plans to break up Royal Bank of Scotland and another lender it rescued, Lloyds Banking Group.

RBS earlier Monday said it would consider selling more assets than initially planned to win EU support for the state aid received by the group, sending its shares plunging.