The move is undertaken as part of the bank’s new three-year strategy focused on generating £1bn a year in savings by 2017, and comes a day after the lender narrowly passed the European Banking Authority’s (EBA) stress test.
Representing about 10% of LGB’s workforce, the latest job cuts are in addition to the 45,000 posts already axed since its multi-billion pound government bailout during the 2008 financial crisis.
The 200 branch closure equates to 6% of LGB’s network of 2,253, and is expected to primarily affect its urban network, including Lloyds and Bank of Scotland fascias, abandoning its pledge to keep open ‘the last branch in town.’
However, the 25%-state owned lender plans to open 50 new branches, which will bring the net closure figure to 150.
Lloyds chief executive Antonio Horta-Osorio said the job cuts come as the bank seeks to digitise its business, automate more of its processes and reduce the requirement for back-office staff.
Lloyds financial director George Culmer said the cuts were ‘regrettable,’ and noted that some staff would be redeployed.
Unite Union national officer Rob MacGregor said: "Job cuts of approximately 10 per cent could have unknown consequences on customer service and will put even more pressure on staff who have helped get the bank back on the right track.
"The wallets of top executives at Lloyds should not be getting fat by forcing low paid workers onto the dole.
"If there are compulsory redundancies or customer service suffers then executive pay should be cut."
The bank reported pre-tax profits of £1.61bn for the nine months to 30 September, and also set aside additional £900m to cover possible payouts for the payment protection insurance (PPI) mis-selling scandal.
To date, PPI saga has cost Lloyds £11.3bn, including £2.5bn in administration costs, with a further £600m to be earmarked in the fourth quarter if customer complaints remain at their current level.
Image: Lloyds Banking Group plans to slash 9,000 jobs and shut down 200 branches by 2017. Photo: Mtaylor848.
