Lloyds Banking Group (LBG) – Britain’s biggest high street lender – is planning to axe 6,240 jobs as part of a £3 billion restructure, but will then create 8,240 new posts to run a newly digitised operation.
The bank has announced an ambitious three year transformation programme to completely revise the way it works and the services offered to its customers.
It is understood that the jobs being cut will come from across the group, including its transformation division and corporate banking, plus its retail and community banking operations.
The 8,000 new roles which will be created over the next three years will focus on areas of digital expansion to reflect the changes taking place across the banking industry.
The unions have been fully briefed on the plans and it is believed 75% of the new roles will be filled by existing staff.
Rob MacGregor, national officer of the Unite union, said: “The news will undoubtedly hit the morale of staff who have had to endure round after round of job cuts, branch closures and constant upheaval.
“Unite will be pressing Lloyds to guarantee no compulsory redundancies and ensure that staff who move into new roles are given the support and skills that enable them to continue delivering the best possible customer service.”
Along with many of its competitors. LBG has been closing branches across the country for a number of years as the way its customers access their money changes.
A switch to mobile and online banking and competition from the new challenger banks has transformed the banking industry.
There will be no new closures as part of the reorganisation.
merger of HBOS and Lloyds during the 2008 financial crisis.
The newly formed group was bailed out with more than £20 billion of taxpayers’ money and since then it has shed thousands of jobs in an attempt to make itself more efficient.
Jobs and closures
Over 12,000 jobs were cut between 2015 and 2017 and consumer champion Which? calculated that Lloyds has closed or intends to close 396 branches since 2015. HBOS (Halifax/Bank Of Scotland) closed 538 in the same timescale.
LBG said 90% of the job losses so far had been achieved by natural wastage and the bank was returned to private ownership last year when the government sold the last of its shares.