Abbey's fund management assets will be transferred to Boston.

Abbey started a three-year overhaul of its operations last year after a foray into wholesale banking saw it plunge into the red with a £984m annual loss.

Only last week Abbey, which employs 23,000 staff in the UK, said it was closing 900 posts in Edinburgh.

It also recently announced plans to "offshore" call centre jobs to India.

The latest job cuts will affect Glasgow-based Abbey National Asset Managers, the Abbey National Group Union (Angu) said.

Boston transfer

The jobs will go over the next few months as Abbey shuts down its active fund management arm in Glasgow.

In a statement, Abbey said it will no longer directly manage funds itself but will use a "multi-manager" approach, meaning external managers will be used instead.

Abbey's fund management unit oversees more than £29bn and employs about 170 staff.

In this instance, its equity and bonds funds will be transferred to US group State Street in Boston.

Question of conflict

John Campbell, who is due to become chairman of Scottish Financial Enterprise, is a member of the State Street operating board, and unions are demanding to know whether there is a conflict of interest issue to be resolved.

"We will be seeking assurances from Scottish Financial Enterprise that there is no conflict of interest in the appointment of their new chairperson who works for an American company that is about to benefit substantially from Scottish job losses," said a spokesman for the Amicus union.

"We must talk through the problems now and ensure Scotland's place as one of Europe's oldest and most renowned financial management centres."

Last week, Abbey said it was closing the Edinburgh offices of its Scottish Provident operations, moving the work to Glasgow.