Lloyds to axe another 5,000 jobs
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Lloyds Banking Group is to axe thousands of jobs next year in a fresh wave of cuts under plans to reduce costs, sources said today.
Up to 5,000 positions are expected to be cut in the UK in 2010, on top of thousands already slashed this year.
The bank is expected to make an announcement confirming the job losses later today.
Several thousand jobs have been cut this year, leaving Lloyds with around 130,000 employees.
Rob MacGregor, national officer of the Unite union, said: "This Lloyds Banking Group announcement of 5,000 job losses demonstrates the depth of corporate arrogance within this taxpayer-supported bank.
"This country's financial sector should be looking towards the future, rather than continuing to slash jobs without proper consideration of how to rebuild the public's confidence in our tarnished banking sector.
"Today marks the start of another dark week for finance workers. It beggars belief that, just days after 5,400 jobs were cut in RBS and HSBC, we see further devastation for workers in this part- nationalised financial institution."
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."
Ged Nichols, general secretary of Accord, the union representing the largest number of former HBOS employees now working in Lloyds, said: "Today's announcement is terrible news for the employees who are affected and their families.
"We always recognised that some job losses were inevitable as Lloyds TSB integrated HBOS operations, but the scale of changes announced today will leave many staff in shock.
"Some of those who are affected will have a long wait before anything definite happens and they may find the uncertainty very difficult to cope with.
"Accord believes that it is vitally important that LBG works closely with the union to ensure that employees are properly supported through the changes and the process is managed without resorting to compulsory redundancies.
"Accord will be providing full support to every member affected by today's announcement."
Lloyds later confirmed that around 5,000 jobs would be hit by changes within its group operations, insurance and retail divisions by the end of 2010.
The bank said the cuts would be "significantly mitigated" by redeployment and the release of contractors, temporary staff and offshore employees.
"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.
"Lloyds Banking Group is committed to working through these changes with colleagues carefully and sensitively. All affected colleagues have been briefed by their line manager today. Unions were consulted prior to this announcement and will continue to be consulted throughout the process.
"The group's policy is to use natural turnover and to redeploy people wherever possible to retain their expertise and knowledge within the group.
"Where it is necessary for colleagues to leave the company, 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."
Mark Fisher, group integration director, 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."
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.
The deal - backed by Gordon Brown at the height of the credit crisis to stave off the nationalisation of ailing HBOS - created a giant with 3,000 branches, 22 million current accounts and 27 per cent of gross mortgage lending.
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 per cent stake.
The State initially pumped in £17 billion, but will invest another £5.7 billion under a mammoth £13.5 billion shareholder cash call announced last week to avoid the Government's asset protection scheme (APS).
Lloyds has also been forced into a major shake-up to appease European Commission concerns over its State support, agreeing to sell the branches and business of Cheltenham & Gloucester and Lloyds TSB Scotland, as well as additional Lloyds TSB branches in England and Wales. The TSB brand and internet operation Intelligent Finance will also be offloaded.
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Comments
I'm all for genuine capitalism but not this 'animal farm' version we are living in the UK now. Someone should get 'those more equal than others' out before there are monumental consequences.
Pre-recession Lloyds TBS had around 140,000 employees and HBoS had similar figure of around 150,000 employees. How can the combined employee figure be around 130,000 employees (even with the several thousands who left this year).
Customers are conned in to interview situations for the most spurious of reasons - ’Oh dear Mr Customer, there appears to be a spelling mistake in your name and address. Let me show you across to my colleague who can correct that for you; and then stich you up with a personal loan that you don’t really want. This way Sir’. Incidentally, what happened to responsible lending and what are the FSA doing to stamp out these practices? Counting paper clips again no doubt!
Branch managers are not actually trusted to run their branches as they are subjected to five conference calls a day by some tosser at regional office during which they are grilled over that days sales figures. When those figures inevitably fall short, they burst out of their office to pass on the bullying to junior staff. My wife and colleagues have recently been told that they are not allowed to go home until a certain level of sales have been achieved despite the fact that C&G’s computer turns most customers down anyway. A grown woman in her forties, she was placed in bloody detention!!
When one considers that Lloyds/TSB was apparently surviving quite nicely until Gormless Gordon forced them to buy HBOS maybe junior staff should be conference call senior management five times a day as they clearly don’t know what they are doing.