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Midsummer date set for outcome of Lloyds review

Lloyds Banking Group has dismissed reports it is preparing to axe 15,000 jobs as part of a £1bn cost saving drive as “pure speculation”.

Reports last weekend suggested the bank will cut huge swathes of its workforce as part of chief executive Antonio Horta-Osorio’s review of the business. The ex-Santander UK chief executive is expected to demand the reduction of hundreds of management roles at Lloyds’ London head office, with further job losses anticipated at branches across the country and in its remaining international operations.

The bank has already axed 28,000 posts in two years following its acquisition of HBOS in September 2008.

But a Lloyds spokesman says: “To say 15,000 jobs are going to go is pure speculation. We cannot say at the moment whether or not there will be job losses, or on what scale any job losses might be.”

Horta-Osorio will announce the outcome of his internal review on June 30.

Informed Choice managing director Martin Bamford says: “The banking sector is in a perilous state, with the Government asking banks to hold more capital and lend more at the same time. Given these pressures, banks like Lloyds are inevitably going to be looking at cost saving options, including payroll savings.”

The European Commission is forcing Lloyds to offload 600 branches as part of the bank’s state bailout package.

Co-operative Financial Services, Virgin Money and NBNK, an investment vehicle founded by Lord Levene, have all been linked to bids for the branches.

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