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Lloyds Banking Group is to slash nearly 1,600 jobs across its branch network as part of an overhaul of its services due to more customers banking online.
Job Reductions and New Roles: Lloyds Banking Group Restructures Operations
Lloyds Banking Group, the owner of Halifax and Bank of Scotland, has revealed plans for job cuts and branch closures as part of its ongoing restructuring efforts.
The move reflects the changing landscape of banking, with a growing preference for online and mobile services.
Key Details:
- Job Cuts and New Roles: Lloyds will cut 1,599 jobs but simultaneously create 830 roles, resulting in a net reduction of 769 jobs. The restructuring aims to align the workforce with the evolving banking preferences of customers.
- Branch Closures: Lloyds plans to close an additional 45 branches, comprising 22 Halifax, 19 Lloyds, and four Bank of Scotland branches. The closures come as a response to the shift in customer behavior, with more than 21 million customers opting for online or mobile banking.
- Digital Transformation: Lloyds emphasized the rapid changes in customer banking preferences and highlighted that only 8% of customers exclusively use branches for managing their money. The restructuring aims to enhance the availability of staff through video meetings or phone calls, reducing the need for in-person appointments.
- Net Impact: The restructuring will result in a net reduction of 769 jobs, with voluntary redundancies offered to some employees. The changes do not apply to junior staff, and the goal is to achieve most reductions through voluntary means.
- Union Response: Accord Union, representing over 22,000 staff at Lloyds Banking Group and TSB, expressed concerns about the significant impact on the branch network and its members. The union highlighted the bank’s objective to encourage digital-first usage, acknowledging that not all customers may be ready to make the switch.
- Industry Trend: Lloyds’ announcement aligns with a broader industry trend of job cuts and branch closures as traditional banks adapt to changing customer preferences. Other banks, including Barclays, NatWest, Virgin Money, Ulster Bank, RBS, and Metro Bank, have also announced closures and job reductions.
Lloyds’ strategic adjustments reflect the ongoing transformation in the banking sector, driven by technological advancements and changing consumer habits. The focus on digital services and the optimization of branch networks underscore the industry’s efforts to remain agile in a digital-first era.
