Lloyds to cut a further 1,200 jobs

Part-nationalised Lloyds Banking Group said it is cutting 1,200 jobs in its group operations and insurance business, taking its…

Part-nationalised Lloyds Banking Group said it is cutting 1,200 jobs in its group operations and insurance business, taking its layoffs to over 8,000 since it bought rival HBOS in January.

Lloyds, 43-per cent owned by the British government, today announced a net reduction in staff of around 650 permanent roles by the end of March 2010.

The bank will create 180 new permanent roles in group operations, and also cut 370 contract and agency staff.

Lloyds said it will streamline a number of Lloyds TSB and HBOS day-to-day functions, including technology and collections, affecting staff in different locations, including Edinburgh, Southend and Halifax.

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It plans to bring together support functions for its insurance division, including marketing, finance and sales operations for its life insurance, pensions and investment businesses, mainly in Edinburgh, Bristol and Leeds.

Analysts have estimated that over 30,000 jobs could be cut as Lloyds integrates HBOS.

The rescue deal created a company with 140,000 employees but left Lloyds saddled with bad loans that resulted in a £10 billion loss in 2008.

The Unite trade union criticised the latest cuts.

"We appear to have Groundhog Day where thousands of staff each week are told that they are to lose their jobs, yet LBG remains a state-owned bank. Unite views the weekly cull of jobs a disgraceful approach by this taxpayer-supported financial institution," said Rob MacGregor, Unite national officer.

Reuters