The Argyll and Sutherland Highlanders are to be axed as a battalion of the Royal Regiment of Scotland.
Defence Secretary Philip Hammond made the announcement on Thursday as part of the biggest overhaul of the Army in more than a century.
All other battalions of the Royal Regiment of Scotland survived the cull, but the Argylls were cut from a separate battalion to just a company, charged with carrying out ceremonial duties such as guarding Edinburgh Castle.
Hammond will set out how the regular Army will be cut from 102,000 troops to 82,000 by the end of the decade - its lowest level since the Napoleonic Wars.
The plan - known as Army 2020 - saw it split into two, with a reaction force, ready to respond to emergencies around the globe, and an adaptable force capable of carrying out a range of tasks and commitments.
Mr Hammond said the changes - drawn up by Lieutenant General Nick Carter - will provide the basis of a smaller, more flexible and agile Army into the future. But the prospect of losing historic units has been the cause of intense anguish within the service.
Minister for Veterans Keith Brown said: "The substantial reduction in the complement of the Argyll and Sutherland Highlanders, and the effective downgrading of the unit to a 'rotating company' undertaking public and ceremonial duties, is a serious cause for concern."
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