Comment & Analysis

LONDON (ShareCast) - Lloyds Banking (LSE: LLOY.L - news) announced it is axing another 2,100 jobs over the next three years as the part-nationalised lender continues to streamline the business following last year's takeover of rival HBOS.

The group said the number is mitigated by the creation of about 350 new roles in the wholesale division, adding that about 700 of the cuts will be achieved through "natural attrition and the release of contract and agency colleagues."

The latest cuts come about as the bank merges the Lloyds and HBOS group operations and wholesale divisions.

"By bringing the businesses together, we will be better placed for the future. Regrettably however, some of our colleagues will be affected by our plans," said Mark Fisher, director, Group Operations.

"We understand that this difficult news will be unsettling and we will be working closely with those colleagues affected," he added.

Lloyds, which is 43%-owned by the taxpayers, has already announced a number of job cuts this year. Earlier this month it confirmed 1,660 positions are to go with the closure of the branch network of Cheltenham & Gloucester.

Only a week earlier, is said it will close a customer services facility in Chatham (CHTM.PK - news) and shed 510 jobs by the end of the year.

In May, the lender confirmed 625 British posts would be lost due to the combination of the corporate and small-business lending units, with an additional 211 full-time jobs to go by January 2010 due to the merger of the Lloyds and HBOS telephone and digital banking services.