New Lloyds boss slashes 15,000 jobs in shake-up

Lloyds banking Group's new chief executive swung the axe yesterday, announcing 15,0000 job cuts on top of the 28,000 already made at the state-backed bank in the past two years.

Antonio Horta-Osorio said the cuts over the next two-and-a-half years were needed to get the bank in shape to support the British economy.

Unveiling his long-awaited strategic review, Mr Horta-Osorio said: "I do regret that we have to do this. We would much prefer to put this bank back on its feet without having to reduce 15,000 jobs. It is a must."

He said the bank was losing money, needed to be more "agile" and had to get in shape so the Government could sell its 41 per cent stake.

But unions reacted with fury to the news, accusing Mr Horta-Osorio of reckless action that will add to the economic gloom.

David Fleming, the national officer of the Unite union, said: "The massive cuts announced today, coupled with the directive to sell some 600 branches, does nothing for customers or businesses to ease the financial pressures they face, only creating more insecurity across the economy."

Most of the cuts will be in the UK but will also include casualties from the decision to slash more than half Lloyds' 30 overseas outposts. The job cuts are meant to save £1.5bn a year with a third reinvested in the business.

Mark Brown, the general secretary of the in-house LTU union, called for 5,000 jobs in India to be moved back to the UK. "It seems Lloyds is cutting jobs and costs simply in order to stand still," he said.

Mr Horta-Osorio said the bank would try to make the cuts from the 10,000 people who leave the bank every year. The cost savings are on top of the £2bn made from its rescue acquisition of HBOS at the start of 2009.

The bank was rocked by losses from HBOS's loans and Lloyds' £3.5bn first-quarter loss included £1.1bn of write-offs on HBOS's Irish loans.

Mr Horta-Osorio, who joined from Santander in March, said a major plank of his plans was to breathe new life into HBOS's Halifax, which was once an aggressive rival to Lloyds. "Halifax is going to compete not only with Nationwide and Santander but with Lloyds," he said. "You have to have the courage to cannibalise yourself."

Other aims include:

* keeping the Scottish Widows insurance business to sell more products to Lloyds' 17 million bank customers;

* increasing non-lending income in wholesale banking by adding foreign exchange and other services;

* targeting the affluent to increase income per customer by 50 per cent by 2014;

* boosting the net interest margin and reducing reliance on wholesale funding by 2014.

The City reacted positively, sending the shares up nearly 10 per cent to 49p. The shares are still well off the average 73.6p the Government paid for its stake.

Paul Mumford, a senior fund manager at Cavendish Asset Management, said: "His approach is uncompromising but shareholders should feel reassured that the new Lloyds chief will not shy away from difficult decisions. The decision to focus on the UK market is sensible as the group's international operations delivered little value."

Mr Horta-Osorio said his plan was based on a slow UK recovery but that there were "significant" risks of a second recession or a sovereign debt crisis knocking it off track.

Jacqueline Bisset has claimed that young women today are obsessed with being 'hot', rather than 'charming', 'romantic' or 'beautiful'
Arts and Entertainment
Lena Dunham
booksLena Dunham's memoirs - written at the age of 28 - are honest to the point of making you squirm
Arts and Entertainment
A bit rich: Maggie Smith in Downton Abbey
tvDownton Abbey review: It's six months since we last caught up with the Crawley clan
Frank Lampard and his non-celebration
premier leagueManchester City vs Chelsea match report from the Etihad Stadium
Life and Style
A new app has been launched that enables people to have a cuddle from a stranger
techNew app offers 'PG alternative' to dating services like Tinder
Greg Dyke insists he will not resign as Football Association chairman after receiving a watch worth more than £16,000 but has called for an end to the culture of gifts being given to football officials
Arts and Entertainment
Jake Quickenden sings his heart out in his second audition
tvX Factor: How did the Jakes - and Charlie Martinez - fare?
premier league
Arts and Entertainment
'New Tricks' star Dennis Waterman is departing from the show after he completes filming on two more episodes
tvOnly remaining original cast-member to leave crime series
Mario Balotelli celebrates his first Liverpool goal
premier leagueLiverpool striker expressed his opinion about the 5-3 thriller with Leicester - then this happened
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
Female fans want more explicit male sex in Game of Thrones, George R R Martin says
tvSpoiler warning: Star of George RR Martin's hit series says viewers have 'not seen the last' of him/her
Plenty to ponder: Amir Khan has had repeated problems with US immigration because of his Muslim faith and now American television may shun him
people''Women's rights is too often synonymous with man-hating'
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Day In a Page

A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments