355 Scottish jobs to go in Lloyds cuts

Published on Tuesday 30 June 2009 15:45

HUNDREDS of bank workers in Scotland are to lose their job as Lloyds Banking Group announced it will axe 2,100 posts across the UK.

Around 355 jobs will go in Scotland following the merger of Lloyds TSB and HBOS.

The cuts are being made in the group and wholesale divisions, and are a result of "careful and detailed" reviews, according to Lloyds.

But the group said it will create 40 Scottish jobs in wholesale.

A total of 2,100 workers will be made redundant across the UK over the next three years.

The bank said 700 jobs will go through "natural attrition" and by releasing contract and agency workers.

Workers were told of the cuts by their managers today.

A statement said: "The group's policy has always been to use natural turnover and to redeploy people wherever possible to retain their expertise and knowledge within the group.

"Where it is necessary for colleagues to leave the company, it will look to achieve this by making less use of contractors, agency colleagues and voluntary severance.

"Compulsory redundancies will be a last resort.

"A range of measures have been put in place to support colleagues through this uncertain time."

Group operations is responsible for the bank's day-to-day services while the wholesale division deals with business customers.

Mark Fisher, director of group operations, said: "By bringing the businesses together, we will be better placed for the future.

"Regrettably however some of our colleagues will be affected by our plans.

"We understand that this difficult news will be unsettling and we will be working closely with those colleagues affected."

The bank said it had decided not to offshore any further permanent existing operational roles, keeping roles in the UK "whenever possible".

The Conservative's Scotland spokesman David Mundell said: "This news will be met with grave concern by the Scots employees who might be affected and indeed anyone who wants to see our financial services industry restored to its traditional esteem and growth.

"Instead of the 'drip, drip' of job loss announcements that we've seen, I would prefer it if Lloyds provided clarity on what its plans are for its Scottish workforce in the months and years ahead.

"There is an atmosphere of uncertainty at the moment and that is distressing."