Lloyds to cut nearly 1,800 staff

Source: Agencies  |   2009-7-1  |     NEWSPAPER EDITION

LLOYDS Banking Group Plc said yesterday that it expects to cut nearly 1,800 jobs in its group operations and wholesale divisions over the next three years as it consolidates the merger of Lloyds TSB and Halifax/Bank of Scotland.

The partly nationalized bank said 2,100 posts would be affected, but that would be partly offset by creating 350 new roles in the two divisions. It expects 700 of the cuts to be made through attritions and the release of contract and agency workers.

The bank added that it would not move any more jobs to other countries, as a gesture to preserving work in the United Kingdom.

The government has taken a 43.4 percent stake in Lloyds, which is struggling with a legacy of toxic assets within HBOS. The government may become the majority shareholder when the bank completes negotiations on joining the government insurance program for bad assets.

Lloyds said it had briefed staff about the reorganization yesterday, following consultations with unions.

Rob MacGregor, national officer of the Unite union, said it was the biggest single job cut announced since the merger, and that the total number of cuts has passed 7,000.