The US banking market is becoming more competitive

The reduction is about 5% of ABN Amro's US workforce and comes after the lender reported its first drop in quarterly profits in almost five years.

ABN Amro will cut the jobs from its Chicago-based LaSalle Bank operations.

Over the past few years, ABN has been cutting jobs to control costs so that it can expand its business into new markets and face down more competition.

"Competition is tough," said ABN Amro spokesman Shawn Platt, adding that job cuts were "part of an effort for us to focus".