The bank is set to inform the staff about the planned restructuring process as early as next week and begin a consultation with thousands of employees in middle-management roles, including analysts and product managers
Lloyds Banking Group headquarters in London, UK. (Credit: Carcharoth/Wikipedia)
UK-based retail and commercial bank Lloyds is planning to axe around 2,500 jobs, as part of a planned restructuring of its business to focus on digital services.
The bank is set to begin a consultation with thousands of employees in middle-management roles, including analysts and product managers.
Lloyds is expected to inform the staff about the planned restructuring process as early as next week, which would also involve the creation of 120 roles.
The news, which was first reported by The Guardian, follows reports that Barclays is planning to cut up to 2,000 jobs, to save up to £1bn ($1.25bn).
Lloyds spokesperson said: “We are evolving and transforming our business to ensure we can do more for our customers and deliver the products and services they need. The bank was reviewing how teams worked without elaborating on potential cuts.
“We’re delivering one of the largest transformations in UK financial services, which includes reviewing how our business and technology teams work together effectively to deliver on our strategy and long-term growth.”
In March last year, Lloyds Banking Group announced plans to close 60 branches, comprising 24 Lloyds Bank, 19 Bank of Scotland and 17 Halifax sites across the UK, resulting in 124 job cuts.
The branch closure was part of the bank’s effort to reduce its physical branch network in response to the growing customer preference towards digital banking.
In May, the British banking group announced the shutdown of an additional 28 branches, including 20 Lloyds branches and eight Halifax branches between August and November 2022.
Also, Lloyds announced plans to invest £4bn in five years to diversify its operations away from mortgages to businesses less dependent on interest rates, such as wealth management and insurance.
In recent years, the UK’s mainstream lenders have reduced from the high street, where one in eight branches running at the beginning of this year to be closed by the end of this year, reported Financial Times.