Lloyds Banking Group, which is 43 per cent owned by Britain’s taxpayers, today told staff that it would cut another 5,000 roles from its UK operations, bringing the total tally of jobs cuts during the financial crisis to 12,500.
The bank said that the jobs would go in insurance, “group operations” —- its name for administrative or back office staff — and retail mortgage lending by the end of next year.
In total, 2,600 permanent jobs will be lost across the UK, with the remaining reductions from contractors, temporary staff and offshore workers.
Today’s cuts are another blow for Britain’s financial sector and country’s workforce as a whole. Figures due out tomorrow are expected to show that Britain’s jobless has risen to 2.5 million, taking the unemployment rate to 8 per cent.
Last week, RBS said that it would cut a further 3,700 posts on top of the 16,000 jobs it has already axed while HSBC, which today announced that its third quarter profits were “significantly ahead” of last year outlined plans to cut a further 1,700 jobs across the country, taking the bank’s job cuts to 3,400 since December.
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Lloyds, which last week unveiled plans to raise £21 billion to avoid using the Government Asset Protection Scheme, and in August reported first half losses of £4 billion, said today that 2,820 jobs in its back office operations would be affected, including 720 roles being redeployed, with a net 1,350 jobs to go.
In the insurance businesses, which include Clerical Medical, 1,190 roles will be hit across the UK with a net reduction of 940 jobs.
Its retail mortgage operations will be consolidated on to seven sites, affecting 950 roles although after relocations, 270 jobs will be lost.
Lloyds said that the unions Accord, LTU and Unite “were consulted prior to this announcement and will continue to be consulted throughout the process.” It stressed that voluntary redundancies would be offered first and compulsory lay offs would only be a last resort.
The lender has already cut 7,500 jobs following its takeover of HBOS in January.
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The union Unite said the cuts were the latest sign of “corporate arrogance” from the banks’ bosses.
Rob MacGregor, the national officer for Unite, said: “This Lloyds Banking Group (LBG) announcement of 5,000 job losses demonstrates 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 re-build the public’s confidence in our tarnished banking sector.
“Unite is calling for the immediate suspension of all job losses in order for the company to introduce an agreement with the union of no compulsory redundancies in any section of LBG. The Government cannot afford to continue to look the other way as hard-working families are punished in this manner.”