London  - The financially strapped Royal Bank of Scotland is considering a cost-cutting programme that could mean reducing its work force by as many as 20,000 people, reported the Sunday Times.

The bank, which has already been partially nationalized in the fallout from the ongoing financial crisis, is planning the cost- cutting effort before the release of a report at the end of February that is expected to show another loss of 28 billion pounds (40.4 billion dollars).

According to the paper, the proposed plan would seek to slash costs by hundreds of millions of pounds over the next three to five years by retreating from some emerging markets, such as Romania and Slovakia, and selling off non-core businesses.

Additionally, the paper reports, RBS is considering selling parts of ABN Amro, which it acquired in 2007 as part of a deal with Spains Santander and Belgian bank Fortis. It reported that talks are underway with the Dutch government to buy RBS' portions of ABN Amro.

Since April, RBS has announced plans to cut 13,000 jobs, including 3,000 in its investment banking business.

The Sunday Times reported that RBS officials are in talks with government officials to find ways to stem further losses at RBS with an eye toward announcing an agreement before the bank's next financial report.

The bank would not comment on the article in the Sunday Times. dpa