Lloyds to slash 1,600 jobs across its branches as it pushes more services online in latest blow to High Street banks
- The bank plans to introduce 830 new roles in their ‘relationship growth’ teams
- There will be no role reductions for the ‘most junior’ staff positions
- Lloyds may have to pay hundreds of millions because due to overpaid finance
Lloyds – one of the UK’s largest banks – is set to axe around 1,600 jobs across its branches in a massive company wide shake-up which will see more online services.
In a bid to improve profits and cut costs during financially precarious times, Lloyd’s are set to get rid of more than one thousand jobs, despite a year of robust profits for the industry.
As part of the business-wide revamp, the bank also plans to create 830 new jobs in their ‘relationship growth’ teams.
With this move, their aim is to better help customers with their financial goals, by providing service across branches, via video meetings and phone calls, Lloyds said.
According to the commercial bank, the overall number of jobs lost will stand at 769.
A Lloyds spokesperson said: ‘As more customers choose to manage their day-to-day banking online, it’s important our people are available when it matters most.
‘We’re introducing a number of new roles and making changes to our branch teams so our customers can see us how and when they want to.’
The spokesperson added there would be no role reductions for the ‘most junior’ positions, and voluntary redundancy was also being offered in some situations.
On X (formerly Twitter) bank staff union, Accord, said: ‘The move represents a significant change to the branch networks and our members.’
The process is separate to a previous shake-up of mainly back office roles in November, which put around 2,500 jobs at risk.
The announcement also landed amid continuing investor concerns that Lloyds may have to dish out billions to customers that potentially overpaid for motor finance between 2007 and 2021.
Earlier this month, the Regulator Conduct Authority launched a review, where the RBC estimated the mishap could cost Lloyds as much as two billion pounds.
Investment banking company, Jefferies estimated that Lloyds could wind up with an eye-watering 1.8 billion pound bill for Lloyds on Wednesday.
A Black Horse spokesperson, which is a subsidiary of Lloyds said: ‘We are currently reviewing the FOS decision and will work collaboratively with the FCA on their upcoming review.’
Lloyds job cut is the most recent hit to high street banks, as earlier this month Barclay’s announced they would be slashing 5,000 jobs worldwide in a cost-cutting drive.
As part of a push to improve Barclays’ profits and cut costs, the jobs were axed from the bank’s 84,000-strong workforce in 2023 – and a quarter of these are thought to be in the UK.
The jobs were lost through a mix of redundancies and vacancies which will not be filled following a hiring freeze, according to Sky News.
This represents one of the most notable cost-cutting measures implemented at Barclays since the financial crisis of 2008.
A statement made to Sky News by the bank said: ‘Barclays removed approximately 5,000 headcount globally through 2023 as part of its ongoing efficiency programme designed to simplify and reshape the business, improve service, and deliver higher returns.
‘The group is also creating capacity to selectively hire front office roles in key businesses.
‘The majority of the individuals impacted are within Barclays’ support function, Barclays Execution Services ‘BX’, and the Barclays UK Chief Operating Officer function, as management layers are reduced and the Group improves its technology and automation capabilities.’
The bank added that is is supporting impacted colleagues with training, advice and outplacement services.
Bank branches are are also disappearing from our high streets this year, as nearly 200 are set to close in 2024 alone.
Lenders have already announced at least 189 branches will shut in 2024 – and the latest exodus follows the 645 that closed last year, consumer group Which? said.
Leading the charge this year is Lloyds which is closing 60, ahead of Halifax with 47 then Barclays at 34, NatWest 21, Bank of Scotland 16, Ulster Bank 10 and RBS one.
Among the towns being hit by closures are Bicester in Oxfordshire, Penzance in Cornwall and Lymington in Hampshire. Others include Whitehaven in Cumbria, Porthcawl in South Wales, Witham in Essex and Downpatrick in Northern Ireland.
‘Sadly we’ve witnessed hundreds of bank branches closing their doors.
‘And with more than 180 branches due to close in 2024, on top of the 5,783 branches that have closed since January 2015, the future of the UK’s high street banking infrastructure is bleak.
‘Consumers are at risk of being left isolated as in-person banking services are axed from their communities – the Government must do more to protect their needs.’
