Lloyds Bank ‘to cut 6,000 jobs but create 8,000 new ones’

UK banking group says restructuring is part of major digital overhaul

 Lloyds Bank  has  raked in £1.82bn   of profit in the three months to September 30th, leaving unions to question the most recent  job cuts. Photograph: Reuters

Lloyds Bank has raked in £1.82bn of profit in the three months to September 30th, leaving unions to question the most recent job cuts. Photograph: Reuters

 

Lloyds Banking Group has confirmed it is to axe 6,240 jobs as part of a digital overhaul. The UK lender said that as part of the shake-up it will also create 8,240 new roles, resulting in a net creation of 2,000 jobs.

Lloyds said that 75 per cent of the new roles would be filled by existing staff, but some specialist roles, such as data scientists and software engineers. would be recruited externally. The cuts will fall on back-office roles and not bank branches.

Lloyds was among the worst performers in a EU stress test of banks, the results of which were published last week.

A Lloyds spokesman said: “Lloyds Banking Group has today announced that it will create an additional circa 2,000 roles as it strengthens its capability to offer customers new leading-edge digital banking products and services.

“The group is investing to further digitise the bank, and will refresh some existing roles and create new roles within its structure, while also providing comprehensive retraining for colleagues to help them build their capabilities to meet the demands of these future roles.”

The move is part of a £3 billion commitment from Lloyds to invest heavily in technology as part of its three-year strategic plan under chief executive Antonio Horta-Osorio.

Lloyds has now announced nearly 10,000 job cuts in the 20 months since the British government sold off its stake in the lender to take it fully private. The bank’s efficiency and modernisation drive has continued apace since it was taken off the public books in May 2017, with Lloyds saying a business overhaul and reduction of its branch network was essential to ensure it stayed relevant amid a digital shift.

Loyal staff

At its peak Lloyds was 43 per cent owned by the British state. The bank raked in £1.82 billion of profit in the three months to September 30th, leaving unions to question the job cuts.

Unite national officer Rob MacGregor said: “As the profits stack up for Lloyds, so does the uncertainty for loyal staff who work hard to serve customers. This latest announcement will undoubtedly hit the morale of staff who have had to endure round after round of job cuts, branch closures and constant upheaval.

“The news of additional jobs will prove to be a bitter pill for workers at Lloyds’ Gillingham site closure. These hard-working staff face limited opportunities for redeployment, while other workers around the country could effectively be forced out of a job because they are unable to travel or move to where the new roles are located.

“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.” – Reuters