Lloyds Banking Group Announces Job Cuts

Lloyds Banking Group is set to reduce its workforce by approximately 1,600 jobs across its branch network as part of a strategic overhaul driven by the increasing trend of online banking. The restructuring, affecting brands such as Halifax and Bank of Scotland, aims to align services with evolving customer preferences. Despite the job cuts, the group stated that 830 new roles would be created, resulting in a net reduction of 769 jobs.

Highlighting the significance of staff availability, Lloyds emphasised that the job cuts would not impact junior employees and that voluntary redundancy options would be offered. The bank acknowledged the rapid transformation in customer behaviour, with over 21 million individuals opting for online or mobile app banking, leaving only 8% relying exclusively on branches for financial management.

The newly created roles will be part of Lloyds’ relationship growth team, focusing on engaging with customers through video meetings or phone conversations in branches. This approach aims to reduce the need for customers to wait for appointments.

Accord Union, representing over 22,000 staff at Lloyds Banking Group and TSB, expressed concern about the impact on the branch network and its members. The union noted the bank’s goal to prioritise digital channels but acknowledged that not all customers were ready to make the switch. It anticipated that most redundancies would result from changes in management structures and emphasised the preference for voluntary redundancy.

This move by Lloyds follows a broader industry trend, with various banks announcing job cuts and branch closures in response to the growing popularity of online banking. Other banks, including Barclays, NatWest, Virgin Money, Ulster Bank, and RBS, have undertaken similar measures in 2023. Lloyds had already disclosed plans to close 45 bank branches in late 2023, with the final closures scheduled for August and November, bringing the total number of branch closures for Lloyds Banking Group to 276. However, the affected staff will be offered alternative roles within the company, and no compulsory redundancies are planned. The restructuring will leave 515 Lloyds Bank sites, 413 Halifax branches, and 133 Bank of Scotland branches remaining.