Nov. 2 (Bloomberg) -- Royal Bank of Scotland Group Plc, the biggest bank owned by the government, will eliminate 3,700 jobs at its U.K. branches, bringing to almost 20,000 the number of posts cut since Stephen Hester joined as Chief Executive Officer.

The bank will make the reductions in administrative roles in the consumer banking division over the next two years, RBS spokeswoman Jayne Goodwins-Miller by telephone today. The unit employs about 25,700 people, and compulsory redundancies will be a “last resort,” she added.

“For RBS to announce the cut of 3,700 frontline bank staff from their high street branches across the U.K. is absolute madness,” Rob MacGregor, National Officer at the Unite labor union, said in an e-mailed statement. “RBS has decided that front line costs should be cut to fund the crisis caused by the city bankers.”

Hester, named CEO in October last year, is cutting jobs to reduce costs after the bank posted the biggest loss in U.K. corporate history in 2008. RBS is 70 percent owned by the government after it received a 20 billion-pound bailout.

Last Updated: November 2, 2009 12:47 EST