Lloyds Banking Group to axe 5,000 jobs
11 Nov 2009
Lloyds Banking Group Plc said yesterday that it has told staff that it would axe another 5,000 jobs from its UK operations by the end of next year, as the troubled bank continues its cut costs by £1.5 billion a year by the end of 2011.
The bank, which is 43.4 per cent owned by the UK government, said that it would cut 2,600 permanent jobs across the UK, while the remaining job cuts will come from contractors, temporary staff and offshore workers.
The new round of job reduction will come from the group operations, insurance business and mortgage division. The bank has resorted to axing 8,000 employees since January, when Lloyds TSB took over HBOS to become Lloyds Banking Group. (See: Lloyds takes over HBOS in $21.7 billion deal with British PM Brown's support)
In a statement, the bank said that 1,188 jobs will be eliminated in the insurance division, 950 from the combined Scottish Widows and Clerical Medical operations, 238 jobs from the General Insurance and 2,814 jobs will become redundant during 2010 from the Group Operations and 720 personnel will be redeployed.
The largest number of job cuts will come from customer service and IT areas. The group had about 118,000 employees at the end of June.
The mortgages business unit will be operating with fewer sites, while it will pull out of some sites altogether.