Lloyds Banking Group has announced plans to cut 4,500 jobs with its IT and operations department.
The bank, which is still 41 per cent owned by the government after a £20bn rescue in 2008, is cutting 1,600 roles held by permanent members of staff and a further 1,150 working on temporary contracts. The banks is also cutting another 1,750 offshore contractor roles.
The cuts are set to be completed by the end of next year following the completion of an integration period between Lloyds and HBOS. Lloyds says it consulted its union partners, Accord, LTU and Unite prior to the announcement.
Lloyds says its policy remains to use natural turnover and redeploy people were possible to ensure their expertise remains within the business. It says compulsory redundancies are a last resort.
Lloyds Banking Group director of group operations Mark Fisher says: “Today marks another major step in bringing our businesses together. The changes we are putting in place will give us a world-class IT operation that will benefit our customers and all our other stakeholders. We will work closely with the colleagues affected by today’s announcement to help them through these changes. We have mitigated the impact on permanent staff with a significant release of temporary and contract staff.”