Lloyds – one of the UK’s largest banks – is set to axe around 1,600 jobs across its branches in a massive company wide shake-up which will see more online services.
In a bid to improve profits and cut costs during financially precarious times, Lloyd’s are set to get rid of more than one thousand jobs, despite a year of robust profits for the industry.
As part of the business-wide revamp, the bank also plans to create 830 new jobs in their ‘relationship growth’ teams.
With this move, their aim is to better help customers with their financial goals, by providing service across branches, via video meetings and phone calls, Lloyds said.
Lloyds is set to axe around 1,600 jobs across its branches in a massive company wide shake-up which will see more online services
According to the commercial bank, there will be an overall 786 jobs lost.
A Lloyds spokesperson said: ‘As more customers choose to manage their day-to-day banking online, it’s important our people are available when it matters most.
‘We’re introducing a number of new roles and making changes to our branch teams so our customers can see us how and when they want to.’
The spokesperson added there would be no role reductions for the ‘most junior’ positions, and voluntary redundancy was also being offered in some situations.
On X (formerly Twitter) bank staff union, Accord, said: ‘The move represents a significant change to the branch networks and our members.’
The process is separate to a shake-up of mainly back office roles reported in November, which put around 2,500 jobs at risk.
The announcement landed amid continuing concerns from investors that Lloyds may have to dish out hundreds of millions of pounds, as many customers could have overpaid for their motor finance between 2001 and 2021.
Earlier this month, the Regulator Conduct Authority launched a review into the market, which RBC predicted in a note could cost Lloyds as much as two billion pounds.
Investment banking company, Jefferies predicted that Lloyds could wind up with an eye-watering 1.8 billion pound bill for Lloyds in another note on Wednesday.
This comes as part of a business-wide revamp to their ‘relationship growth’ teams, moving more of their services online
A Black Horse spokesperson said: ‘We are currently reviewing the FOS decision and will work collaboratively with the FCA on their upcoming review.’
Lloyds job cut is the most recent hit to high street banks, as earlier this month Barclay’s announced they would be slashing 5,000 jobs worldwide in a cost-cutting drive.
As part of a push to improve Barclays’ profits and cut costs, the jobs were axed from the bank’s 84,000-strong workforce in 2023 – and a quarter of these are thought to be in the UK.
The jobs were lost through a mix of redundancies and vacancies which will not be filled following a hiring freeze, according to Sky News.
This represents one of the most notable cost-cutting measures implemented at Barclays since the financial crisis of 2008.
A statement made to Sky News by the bank said: ‘Barclays removed approximately 5,000 headcount globally through 2023 as part of its ongoing efficiency programme designed to simplify and reshape the business, improve service, and deliver higher returns.
A closed Lloyds bank branch in Plymouth, Devon
‘The group is also creating capacity to selectively hire front office roles in key businesses.
‘The majority of the individuals impacted are within Barclays’ support function, Barclays Execution Services ‘BX’, and the Barclays UK Chief Operating Officer function, as management layers are reduced and the Group improves its technology and automation capabilities.’
The bank added that is is supporting impacted colleagues with training, advice and outplacement services.