Hundreds of Scottish jobs to go as Lloyds unveils fresh round of cuts

Published on Tuesday 19 May 2009 22:07

LLOYDS Banking Group yesterday announced 625 job losses, with almost half of those expected to be in Scotland.

The bank is merging its corporate and small-business lending arms across the UK and it is feared offices in Edinburgh and Glasgow will bear the brunt of 300 job cuts north of the Border.

It is the latest in a raft of recent job losses announced by Lloyds, and has sparked fury among union leaders, with Unite last night accusing the group of embarking on a strategy of "death by a thousand cuts".

However, Lloyds – 43 per cent government-owned after its takeover of Halifax Bank of Scotland – said it would be creating 300 positions in its new wholesale banking department, and some of those made redundant would be "considered" for the new roles.

The company said it preferred to use natural turnover and redeployment wherever possible, with compulsory redundancies being viewed as a last resort.

Philip Grant, chief operating officer in Lloyds Banking Group's wholesale division, said: "The changes we are making will help us ensure we have the right organisation to meet the needs of the market.

"At the same time, we are committed to working through these changes with colleagues carefully and sensitively. We will seek to make these changes by using natural turnover and redeployment wherever possible."

Lloyds said a range of measures had been put in place to support employees through this "uncertain time".

Reacting to the announcement yesterday, Liberal Democrat finance spokesman, MSP Jeremy Purvis, urged Lloyds to provide clarity on their plans.

"It is becoming apparent that their corporate strategy is to make a series of relatively low-key but significant announcements," he said.

"This should not be used to mask the real picture if they are intending large-scale job losses in Scotland."

The announcement comes days after the Lloyds chairman, Sir Victor Blank, said he would step down, following criticism of losses stemming from the decision to buy HBOS. Last month, Lloyds confirmed it is to cut 985 jobs in its motor finance business.

Rob MacGregor, Unite's national officer, stressed the union's opposition to compulsory job losses and

said: "The union will not accept a situation where Lloyds makes weekly announcements of hundreds of job losses.

"Staff must be told the company's plans for the future and not be left with the uncertainty that they could be the next to lose their jobs."