The owners of Clydesdale and Yorkshire banks say they will cut more than 1400 jobs across the country in the next three years.
National Australia Bank (NAB) confirmed posts would go by 2015 after carrying out a strategic review earlier this year.
The group, which made £25m losses in the first half of the year, aim to reduce their national operation of 337 branches and 8300 workforce.
NAB said the review was in response to "the deterioration in the economic and operating conditions" in the UK, particularly in the commercial property market.
However both banks say they remained focused on Scotland and Northern England, with 29 financial solution centres to close in southern England.
NAB chief executive Cameron Clyne said: "In the last half-year there has been a significant downgrade in the growth prospects of the UK economy, in part reflecting the drag on its recovery from heightened weakness in the eurozone.
"The action we are taking is needed to adapt to this current economic environment in the UK, and to reposition the UK banking business to improve returns for the group over the medium term."
He added: "While every effort will be made to support our people, the substantive repositioning of the business will impact roles in the UK."
Unite national officer David Fleming said the announcement was "nothing short of brutal" for the UK workforce.
He said: "Unite finds it disgusting that the company decided to release a statement from Australia in the middle of the night so UK staff across Yorkshire and Clydesdale banks would wake up to hear that their jobs are being cut through the morning news reports.
"This is not the behaviour of a responsible or credible organisation."
The bulk of the job losses - 670 - will come from the closure of the financial services centres in the south, 300 jobs are set to go in Yorkshire, 60 in Scotland, on top of 200 that have already been announced. A further 200 will be moved to NAB.
Scottish Finance Secretary John Swinney said: "The Scottish Government welcomes Clydesdale Bank's continued commitment to Scotland, its commitment to make no branch closures and its decision to boost lending to small businesses.
"This government recognises the importance of a successful banking sector to Scotland's economy and we continue to work with the banks to ensure the sector as a whole is both competitive and sustainable.
"This will be a difficult time for those affected by job losses and we will do everything we can to provide support and help those affected through the finance sector jobs taskforce and our Partnership Action for Continuing Employment.
"We will continue to work with Clydesdale Bank as it seeks to strengthen its position in Scotland and to ensure any job losses are minimised."