Unions fume as Lloyds axes 2,100 more staff

Lloyds Banking Group is to axe a further 2,100 jobs in its latest cull of staff since the group was created via Lloyds TSB's merger with HBOS last year. The cuts announced yesterday, to be made over the next three years, takes the total number of job losses to more than 7,000 at Lloyds, which is 43 per cent owned by the taxpayer.

Mark Fisher, director of group operations at Lloyds, said the losses followed the merger of the two groups. "By bringing the businesses together we will be better placed for the future," he said. "Regrettably, however, some of our colleagues will be affected by our plans."

The trade union Unite said it was "astonished" by the cuts. Rob MacGregor, Unite national officer, said: "As a taxpayer-supported organisation, real questions need to be asked as to how far this bank can be allowed to go in this systematic slashing of staff."

Lloyds said a third of the posts would be shed through natural attrition and cuts to the number of contract and agency staff it employs. The bank also pledged not to offshore any further permanent operational roles, and said: "Compulsory redundancies will be a last resort."

Lloyds said the decision to cut jobs came after "careful and detailed reviews and will result in the bringing together of a number of functions across Lloyds TSB and HBOS".

The bank also announced it had created 350 new roles in its wholesale operation.

The group was the first European bank to return bailout cash to the government this month after a successful rights issue that raised £4bn. The move redeemed the Government's high interest preference shares, which have now been swapped for ordinary shares.

The UK poured £17bn into the group shortly after Lloyds merged with HBOS to avoid the latter bank's collapse in October last year.