Royal Bank of Scotland is planning to cut hundreds of jobs in its US trading businesses over the next few months as it seeks to slim down its operations to prepare for tough new US regulations, according to people familiar with the matter.

The cuts, which are set to take place over the next 18 months, could result in the loss of as many as 400 jobs across the US business, these people said. The bank, 80%-owned by the British government, is scaling back its trading operations at Stamford, Connecticut, as part of a wider push to cut costs and refocus on its home UK market.