HBoS sheds 650 jobs

UP to 650 jobs are being cut at Halifax Bank of Scotland as part of plans to merge two of its business banking divisions, it was announced today.

The Edinburgh-based bank - Britain's fifth largest - said the roles would go across its UK offices over the next 18 months.

It is merging its 1,000-strong Business Banking arm, which sits in the group's retail division, with the group's Commercial Business in the corporate division to create one single unit focused on small and medium-sized businesses.

HBOS said that alongside the 650 expected job losses, another 350 staff within the enlarged division would be transferred to alternative roles in the group.

The group said it hoped to achieve the reduction in jobs through voluntary redundancies, normal staff turnover and, where possible, further redeployment.

Trade union Unite said it was disappointed at the decision to axe jobs and would be calling for no compulsory redundancies.

Ged Nichols, of HBOS's group union Accord, added: "We are always unhappy at any planned reduction in the roles and opportunities available within HBOS – even when we fully understand what the business believes to be the commercial need for the changes.

"We will work hard with HBOS and Unite and do our best to ensure that alternative roles can be found for those union members who want to stay in the company."

HBOS said the merger is designed to create "significant synergies", taking out duplication between the two functions.

"The new strategy will further enable HBOS to win selective market share from the 'big four' banks by acquiring more primary relationships from SMEs," it said.

"The single business will have a very clear focus on winning even more deposits from customers."