Lloyds Trade Union (LTU)

June 30, 2011 02:45 ET

15,000 Jobs Axed From Lloyds Banking Group

LONDON, UNITED KINGDOM--(Marketwire - June 30, 2011) - The Lloyds Banking Group has today announced plans to cut 15,000 more jobs, raising to 42,000 the total number of roles axed since the merging of Lloyds TSB and HBOS.

The key results of the strategic review are as follows:

  • The Group will cut an extra £1.5bn from its annual costs of £11bn by the end of 2014 and that's on top of the £2bn already realised from the integration of Lloyds TSB and HBOS. The Group has said that 15,000 jobs will be lost as a result of the focus on costs. So since the merger 42,000 jobs will then have been axed from the Group.
  • The Group has also said that its aim over the next few years is to reduce its cost income ratio to between 42%-44% from 50%. The Group has not yet provided a breakdown of that £1.5bn to show where the savings are going to be made although, one would expect the bulk of that saving to come from simplifying the Bank's IT systems which are on a myriad of different platforms. LTU has asked for a guarantee that jobs will be brought back from India and that all development work on the new system will be done in the UK in order to save jobs and secure vital skills for the UK economy.
  • HBOS will become a "challenger" brand competing with the likes of Nationwide and Santander and internally with Lloyds TSB in an attempt to show the Banking Commission that there is significant competition between the brands. Lloyds TSB will continue to compete with high street Clearing Banks such as Natwest, Barclays and HSBC. Some of the savings from the focus on costs will go towards creating a new suite of Halifax products. What investment is there going to be in the LTSB Network or other key areas of activity? Even after Verde, Halifax will still only account for about a third of the Group's total Network.
  • Despite earlier reports of their likely demise Scottish Widows and SWIP will continue to provide the Group with pension, insurance and investment products.

In addition to those staff who will be made redundant as a result of these announcements, many hundreds more will find themselves having to transfer between functions, accept downgradings or move between sites.

Campaign To Mitigate UK Job Losses

Lloyds Trade Union (LTU), which is the largest trade operating in the Lloyds Banking Group, is insisting that work should be returned from India and the Philippines to the UK, in order to help minimise the impact of job reductions amongst its UK-based workforce.

LTU has so far collected the signatures of over 500,000 customers in the UK who are opposed to their accounts being managed abroad and support the call for jobs to be returned to the UK.

Union Comments

Mark Brown, General Secretary at LTU has said:

"If the Bank is going to cut another 15,000 jobs then those 5,000 jobs that are currently being done in India should be brought back immediately to the UK so that they can be filled by staff who will be made redundant as a result of the Group's Strategic Review. The Bank is 41% owned by the taxpayer and it has a special responsibility to secure jobs in the UK and limit the impact of compulsory redundancy on Lloyds Banking Group staff.

What's not clear from this Strategic Review is how growth is going to be created and profits restored. It seems that Lloyds is cutting costs and jobs simply in order to stand still. But haemorrhaging so many jobs and adopting a slash and burn policy to costs is inevitably going to undermine customer service levels. If customer attrition increases and service levels deteriorate then the Group's strategy of becoming smaller in order to get bigger will fail miserably. The Group will simply become smaller and thousands more jobs will be axed."

About Lloyds Trade Union (LTU)

Lloyds Trade Union (LTU) is the largest independent trade union representing staff working in the Lloyds Banking Group, with well over 40,000 members.

Mark Brown, General Secretary

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