Lloyds Banking Group cuts 1,230 jobs as part of strategic overhaul

Wed Oct 12, 2016 6:35am EDT
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LONDON (Reuters) - State-backed Lloyds Banking Group (LLOY.L: Quote) said on Wednesday it planned to ax 1,230 jobs as part of a three-year restructuring plan aimed at cutting costs and improving returns for shareholders.

Employee union Unite branded the job losses, expected to hit the lender's retail banking, Group Operations, Customer Products & Marketing, and Finance and Risk divisions, as "horrific".

The net total of planned layoffs is inclusive of 110 new roles that will be created across these business areas, the bank said.

Lloyds announced in July it would cut a further 3,000 jobs and close 200 branches amid a more testing economic environment caused by Britain's vote to quit the European Union.

The bank has already cut about 4,000 positions from its 75,000-strong workforce in 2016 and has closed around 100 branches so far this year.

"The constant flow of job cuts across Lloyds must now be halted and staff be allowed to get on with delivering the high quality and impressive service they are so good at providing," Rob MacGregor, Unite national officer said in a statement.

"The Lloyds management pursuit of this cuts agenda is counter-productive in their aim of a successful business."

A spokeswoman for the bank said all affected employees have been briefed by managers and unions would continue to be consulted.

"This process involves taking difficult decisions, and we are committed to working through these changes in a careful and sensitive way," she said.   Continued...

A man uses an ATM  outside a branch of Lloyds Bank in central London October 28, 2014. REUTERS/Andrew Winning