Scottish workers are among around 600 staff set to lose their jobs at a struggling cheque processing firm.

Intelligent Processing Solutions Ltd (iPSL) staff were told the firm will be reducing its operations to just two sites in Northampton and Milton Keynes and almost halving the number of employees, said Unite.

National officer Dominic Hook said the announcement was "tragic news" for the workforce.

The company is expected to close its two Scottish bases in Edinburgh and Clydebank, West Dunbartonshire.

Mr Hook said: "This consolidation strategy is deeply disappointing and the impact will be felt widely.

"This proposal will leave a workforce of just over 700 at iPSL which handles around 80% of cheques issued in the UK each year.

"The tide of digitalisation across the financial services brings with it huge challenges as organisations have to adapt the way they work".

He added: "The changing face of cheque processing, with new digital imaging, has brought considerable difficulties for this industry.

"Unite wants to see iPSL make the necessary investment through new technology to secure as many jobs as is possible.

"This news will be a bitter blow for iPSL colleagues and Unite has pressed the company to provide the workforce with support and guidance with two training programmes and outplacement support to be offered to staff."

Unite said the plans, which are yet to be signed off by the board, will lead to site closures in Bootle, Bradford, Copley, Edinburgh Tweed House, Chelmsford, Clydebank and Camberley in 2018.

A spokeswoman for iPSL said the changes were prompted by the new ICS system introduced by the Cheque and Credit Clearing Company which will involve images of cheques being exchanged between banks and building societies.

She said: "iPSL is the market leader in processing domestic cheques across the UK, employing around 1600 full time equivalent posts across nine sites in the UK.

"The introduction of ICS will have a huge impact on the current cheque clearing process and for the last 12 months iPSL has been sharing developments and potential implications with our employees and bank customers.

"Its introduction will remove the requirement for remote data capture and processing, therefore reducing site requirements and a subsequent reduction in staffing numbers."

She added: "This week we shared with our employees planning assumptions regarding our future site strategy and the potential consolidation of our nine existing operational sites to two during 2018.

"These plans are subject to change and are still to be agreed by iPSL clients and Board.

"iPSL remains committed to keeping our employees informed."