Lloyds Banking Group to cut 1,600 jobs in major cost-cutting shake-up

25 January 2024 , 15:40

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Lloyds Banking Group to cut 1,600 jobs in major cost-cutting shake-up

Lloyds Banking Group is cutting about 1,600 jobs across its branch network, as part of an ongoing shift towards online banking.

The banking group, which also owns Halifax and the Bank of Scotland (BoS), said it will also be creating around 830 new roles as part of the strategy, resulting in a "net reduction" of 769 jobs. The new jobs will be part of the group's expanded Relationship Growth team, which is part of its Consumer Relationships business.

Lloyds said the new roles will help deliver an "improved service" which will give customers more opportunities to see Lloyds staff in branch, through video meetings, or over the phone - without having to wait for appointments as often. The move is part of plans launched in 2022 which aimed to make the group a "leading digital bank".

Lloyds said it will be "supporting" its staff whether they are taking up one of the 830 new roles, moving to a different role elsewhere, or leaving the Group. It also notes that there will be "no role reductions" for most of its junior positions and it will be offering voluntary redundancy in some situations.

1,600 jobs are to be cut (SOPA Images/LightRocket via Getty Images)

A spokeswoman for the bank 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."

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According to the banking group, only 8% of its more than 21 million banking customers choose to bank with them exclusively through its high street branches, whilst four out of five now use online banking.

Over the last year, like other major high street banks, Lloyds announced a whole raft of branch closures across the country. In November 2023, the bank shared that it would be closing a further 45 more branches which took the total of sites closed across Lloyds, Halifax and Bank of Scotland in 2023 and 2023 to 276.

Last year, 152 Lloyds, Halifax, and Bank of Scotland branches closed and this year 123 are planned to shut their doors.

Ruby Flanagan