Lloyds announce 305 job cuts and 49 branch closures

Lloyds Banking Group (LON: LLOY) has announced plans to cut a further 305 jobs in order to close 49 branches across the UK.

As customers are increasingly opting for digital banking rather than going into branches, the bank announced the closures last year but said at the time it would cut fewer than 100 jobs.

The company said it planned to cut a total of 1,230 roles from different branches, but would then create 925 jobs elsewhere in the group.

“The changes in roles are in line with our plan to adapt to and meet the changing needs of our customers and as a result we are also today announcing the creation of 925 new roles,” said a spokesperson from Lloyds.

“The group’s policy is always to use natural turnover and to redeploy people wherever possible to retain their expertise and knowledge within the group.”

“Since 2011, over 90 per cent of role reductions have been achieved through a combination of natural attrition, redeployment and voluntary redundancy. Where it is necessary for employees to leave the company, we will look to achieve this by offering voluntary redundancy. Compulsory redundancies will always be a last resort.

“Today’s announcement involves making difficult decisions, and we are committed to working through these changes in a careful and sensitive way. All affected employees have been briefed by their line manager. Accord and Unite were consulted prior to this announcement and will continue to be consulted,” the spokesperson added.

In February, the group posted strong results with pre-tax profits up 24 percent to £5.3 billion. The bank also began its £1 billion buyback program. 

“The sole purpose of the programme is to reduce the ordinary share capital of the company,” said Lloyds.

The branch closures are part of the group’s attempts to make £8 billion worth of savings by 2020. Many banks are taking a similar approach and between them, thousands of branches have been axed in recent years.