LONDON, England - November 10, 2009 - Lloyds Banking Group has announced 5,000 job cuts as the government-backed bank moves to integrate its wide-ranging businesses.
The majority of the losses - 2,820 - will come from its group operations, which includes IT, payment services and collections, and the remaining cuts will be divided between its insurance and retail businesses.
Lloyds said a large proportion of the job losses related to temporary positions and those held by contractors and staff working offshore. The losses would also be mitigated by redeploying staff elsewhere, meaning the net reduction of permanent jobs would be 2,600 by the end of next year.
The job cuts come as a result of the integration of HBOS, which Lloyds bought at the height of the financial crisis.
“Today marks another important step in bringing our businesses together,” said Mark Fisher, group integration director.
In Lloyds’ insurance business 1,190 roles would go, with about 250 of those being shed through the termination of temporary contracts.
The number of jobs in the mortgage operations will shrink by 950 as the business is consolidated into seven sites. The bank said 680 employees would be transferred elsewhere.
Unite, the union, said the job losses demonstrated “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,” said Rob MacGregor, Unite’s national officer.
The job cuts come just days after Royal Bank of Scotland, which was also bailed out by the government, and HSBC unveiled thousands of job losses.
The majority of the losses - 2,820 - will come from its group operations, which includes IT, payment services and collections, and the remaining cuts will be divided between its insurance and retail businesses.
Lloyds said a large proportion of the job losses related to temporary positions and those held by contractors and staff working offshore. The losses would also be mitigated by redeploying staff elsewhere, meaning the net reduction of permanent jobs would be 2,600 by the end of next year.
The job cuts come as a result of the integration of HBOS, which Lloyds bought at the height of the financial crisis.
“Today marks another important step in bringing our businesses together,” said Mark Fisher, group integration director.
In Lloyds’ insurance business 1,190 roles would go, with about 250 of those being shed through the termination of temporary contracts.
The number of jobs in the mortgage operations will shrink by 950 as the business is consolidated into seven sites. The bank said 680 employees would be transferred elsewhere.
Unite, the union, said the job losses demonstrated “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,” said Rob MacGregor, Unite’s national officer.
The job cuts come just days after Royal Bank of Scotland, which was also bailed out by the government, and HSBC unveiled thousands of job losses.