Lloyds Banking Group: 15,000 more jobs to go

30th June 2011

António Horta-Osório was reported on The Guardian website as being "unrepentant" in the face of union anger at the decision

It also reports that HSBC is expected to cut up to 1,000 roles later today.

Lloyds Banking Group  has already made 28,000 staff cuts following its buy- out of HBOS during the 2008 banking crisis; the latest announcement will take the total to almost 45,000 since the deal was finalised in early 2009, when HBOS employed 75,000.

Trade website Mortgage Strategy reported that Lloyds aims to simplify the banking group to improve service and deliver £1.5bn of annual savings in 2014. It will do this "through better end-to-end processes and IT platforms, as well as a delayered management structure and simpler legal structure".

It also expects to cease trading in 15 of the 30 countries it currently offer services in and will instead focus on UK operations and revitalising its Halifax brand.

The report says: “We will revitalise Halifax as a leading challenger brand in UK retail banking and invest behind Lloyds TSB and Bank of Scotland as leading relationship brands. We will also make a commitment to keep total branch numbers at the same levels through the period, and not to offshore further UK permanent operational roles.”

The lender has also reaffirmed its commitment towards Scottish Widows.

The bank however does not make any new mortgage lending commitments.

On Mortgage Strategy reader Anonymous commented: "Cut jobs and reduce middle management so we can overwork our underpaid, ground level staff, thus preserving our high profits and obscene, board level wages – propped up, currently, thanks to the taxpaying proletariat."

However the city seemed to like the news with the Guardian reporting that: "Lloyds was the biggest riser in the FTSE 100 in early trading. The shares started 5% higher at 42p – but still well below the 73.6p at which the taxpayer breaks even on its 41% stake."

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