Lloyds Banking Group Cuts 380 Jobs

    Phto by Mtaylor848 from Wikimedia Commons

    It was revealed last night that almost 400 jobs are going to be axed by Lloyds Banking Group as part of a company-wide shake-up to improve its online and mobile services performance.

    However, approximately 435 new positions will also be created as the company strives to compete in an increasingly competitive digital market.

    The changes, resulting in a net increase of 55 positions, are part of the most recent three-year strategy of the bank. Announced last February, it will see Lloyds invest 3.0 billion pounds into staff and technology as it aims to adapt to the increasing popularity of digital banking and decreasing footfall in branches.

    The trend, combined with an effort to reduce costs, has seen the biggest banks in the United Kingdom axe thousands of jobs and close hundreds of its branches in the past years. On Wednesday, the Royal Bank of Scotland also announced that it would be cutting 258 of its jobs as part of its plans to shut down 54 of its outlets.

    A spokesperson from Lloyds said that the new positions will be created in the transformation division of the bank, with a concentration on engineering and design to enable the bank to provide more leading-edge services and products. He added that the announcement “will result in an overall net increase in the number of roles within our organisation … it does involve making difficult decisions.”

    “The group’s policy is always to use natural turnover and to redeploy people in the first instance.” The news comes after more than 1,300 roles have already been cut at Lloyds this year, as the bank ramps up its shift towards competing with financial rivals on digital initiatives.”

    A union representing the staff of Lloyds called Accord said that the changes would affect the people and productivity, commercial banking, transformation, and retail divisions of the bank.