Tuesday June 30, 01:22 PM
Lloyds to cut 2,100 more jobs
LONDON (AFP) - State-controlled Lloyds Banking Group (LSE: LLOY.L - news) said Tuesday it would cut 2,100 more jobs over the next three years as the embattled company seeks to streamline its operations.
"LBG is announcing today a number of organisational changes within its group operations and wholesale divisions," it said in a statement.
"These changes follow careful and detailed reviews by the group and will result in the bringing together of a number of functions."
Lloyds, which is 43-percent owned by the government after a huge bailout, added that it has already cut 700 roles "through the natural attrition process" and the release of contract and agency workers.
"Following these changes, up to approximately 2,100 roles will be affected over the next three years. This number is mitigated by the creation of approximately 350 new roles in the wholesale division."
According to trade union estimates, the bank has now slashed around 7,000 jobs since its creation in January, when Lloyds TSB bought rival lender HBOS in a government-brokered deal.
HBOS had faced potential collapse as the credit crunch hit its ability to raise funds. At the same time HBOS' balance sheet was ravaged by recession and a domestic housing market slump.
Trade unions reacted with anger to the latest round of steep job cuts from the government-controlled LBG.
"As a taxpayer supported organisation, real questions need to be asked as to how far this bank can be allowed to go in this systematic slashing of staff," said Rob MacGregor, a senior official at union Unite.
"This loss of over two thousand jobs marks the largest single job loss announcement since the formation of LBG in January."
MacGregor added in his statement: "Morale is now truly low as employees across Lloyds are in a permanent state of anxiety as they see their employer announce hundreds of job losses every week.
"This Labour government can not afford to turn the other way as bank workers across the country are losing their jobs. This horrendous news brings the total of job losses since January in LBG to over 7,000."
Earlier this month, Lloyds revealed that it would shut its network of 164 Cheltenham & Gloucester retail branches in November with the loss of 1,660 positions.
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