10 November 2009 News

 

Lloyds cuts 5000 jobs

Lloyds Banking Group is to cut 5000 jobs by the end of 2010. In Group Operations, 2,820 roles will be affected, including 720 roles being redeployed. The bank says 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.

The bank, having absorbed HBOS under government pressure, has been told to reduce its operations as the government and the EC believes it to be too big.

The Operations division provides a whole range of essential services to ensure the smooth running of the company on a day to day basis. It is responsible for ensuring the company delivers quality service to its customers across the UK. The changes outlined today involve IT, collections and recoveries, payment and business services and banking operations roles.

The Group's policy is to use natural turnover and to redeploy people wherever possible. Where it is necessary for staff to leave the company, the bank says it will look to achieve this by offering voluntary severance and by making less use of contractors and agency colleagues. Compulsory redundancies will be a last resort.

The Group is taking a range of measures to mitigate the impact of today's announcement on roles. Approximately 1,000 of the total role reductions therefore, including about 550 offshore positions, are expected to be achieved through the release of contractors and temporary staff. Additionally, there will be 1,400 redeployed or relocated roles.

Mark Fisher, group integration director at Lloyds Banking Group said: "Today marks another important step in bringing our businesses together. In addition, our commitment is to keep colleagues fully informed about our integration plans. We will continue to work closely with our colleagues affected by today's announcement to help them through these changes over the coming year. We have mitigated the impact on positions through redeployment and the release of contractors and temporary staff."