The reorganisation follows moves to speed up the integration of TSB and Scottish Widows, the mutual life insurance group Lloyds TSB is buying for pounds 6.7bn.
The present structure, which is organised around product areas, will be swept away and replaced by one consisting of two main divisions - a customer management division - responsible for design, production and marketing of products, and a retail distribution division covering branches, telephones and e-commerce.
Peter Ellwood, the chief executive, said: "The rapidly changing ways in which our customers wish to conduct business with us make it essential that we restructure our business in a way that more effectively meets our customers' needs. This new structure will enable us to take an important leap forward in achieving our aim to be first choice for our customers."
As part of the reorganisation Archie Kane, head of information technology, will join the main board. He will be responsible for the entire group's IT activities, which are to be brought under one roof. This is believed to be the first occasion that a major UK bank has put its IT director on the main board.
Mike Fairey, currently deputy chief executive, will head the new customer management division. Gordon Pell, director of retail banking, will head the distribution division. David Pritchard will retain responsibility for wholesale and international banking, and will additionally take on all business, corporate and treasury operations.
Mike Ross, chief executive of Scottish Widows, is set to become deputy chief executive with responsibility for insurance and investments when the takeover is completed next year.