Lloyds to axe 1,000 Scottish banking posts

Published on Tuesday 10 November 2009 12:23

LLOYDS Banking Group is to axe around one thousand posts in Scotland by the end of next year under plans to reduce costs, it was announced today.

Lloyds have confirmed that around 5,000 jobs will be hit by changes within its group operations, insurance and retail divisions by the end of 2010.

Several thousand jobs have been cut this year, leaving Lloyds with around 130,000 employees.

The bank said the cuts would be "significantly mitigated" by redeployment and the release of contractors, temporary staff and offshore employees. This would bring the total number of permanent job losses in Scotland to about 500.

"Taking these mitigating actions into account means there will be a net reduction of about 2,600 permanent jobs across the UK by the end of 2010," the bank said in a statement.

"In group operations, 2,820 roles will be affected, including 720 roles being redeployed. In addition, approximately 750 of the total role reductions, including about 550 offshore positions, are expected to be achieved through the release of contractors and temporary staff. Following these changes, there will be a net reduction of 1,350 jobs in group operations.

"Within insurance, 1,190 roles will be affected across the UK. 950 will come from the life, pensions and investments business and 240 from general insurance. Approximately 250 of the role reductions are expected to be achieved through the release of contractors and temporary staff. Therefore, there will be a net reduction of 940 jobs in insurance.

"Within mortgage operations, approximately 950 roles will be affected across the UK as the business is consolidated to seven sites. However, 680 positions will be relocated to a new site or redeployed. Following these changes, there will therefore be a net reduction of 270 jobs in mortgage operations.

Unite said the fresh job cuts would hit workers in Lloyds' insurance, group operations and retail divisions, describing it as a "bitter blow" for staff.

"Unite is calling for the immediate suspension of all job losses in order for the company to introduce an agreement with the union of no compulsory redundancies in any section of Lloyds.

"The Government cannot afford to continue to look the other way as hard-working families are punished in this manner."

Lloyds has cut around 10,000 jobs since taking over HBOS at the end of last year.

The UK "superbank" formed by Lloyds' takeover of HBOS has endured a rocky ride since news of the rescue broke in September last year.

Lloyds believed the takeover was a good long-term bet, but the toxic baggage brought by HBOS's reckless lending and the impact of recession on its loan book has seen the Government take a 43% stake.

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