Lloyds to cut 640 jobs and close 23 branches
Lloyds Banking Group is to cut about 640 jobs and close 23 branches as part of its programme to cut costs and restructure the bank.
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Britain’s largest mortgage lender will cut jobs in information technology and back-office operations in London, Edinburgh, Manchester and Bristol, according to Reuters.
As part of its restructuring plan it will create 115 jobs so a net reduction of 525 jobs will be cut. The cuts are part of a plan to axe 9,000 roles by 2017 and so far 7,300 jobs have gone in consumer banking, retail wealth management and technology.
According to Reuters they may finish the planned jobs cuts ahead of schedule and are considering deeper cuts than originally intended. It started restructuring and cutting jobs in October 2014.
The Unite union also said three quarters of Lloyds staff reported symptoms of stress and four out of five worked unpaid overtime every week.
The news coincided with the UK’s vote to leave the European Union last week which saw the bank’s share price plummet by 25% in two days. Most of the bank’s assets are in the UK and would be hardest hit by Brexit.
According to Bloomberg, Lloyds chief executive Antonio Horta-Osorio needs to boost dividend payments as the UK faces a potential recession and policy easing from the Bank of England in the second half of the year.
Amid the financial crisis in 2008 Lloyds received a £20.5bn bailout. On Tuesday the Treasury said it had shelved plans to sell its remaining 9% stock in the bank, as they were expecting a lengthy period of market volatility which would make it difficult to see when a sale would achieve value for taxpayers.
Shares in Lloyds rose 0.24% to 55.08p at 1314 BST.