Lloyds bank reveals 5,000 more job cuts

Lloyds Banking Group has confirmed plans to axe 5,000 more jobs by the end of next year.

Up to 2,600 permanent jobs in the UK are expected to go by the end of 2010, while temporary and contract staff numbers will also be cut to make up the total. However, the bank ruled out HR job cuts.

The latest blow comes on top of 6,400 job cuts announced by the bank earlier this year.

The plans are designed to reduce duplication between divisions following the merger between Lloyds and HBOS last year.

Under the changes, the operations unit – which involves IT, collections and recoveries, payment and business services and banking operations roles – will be the hardest-hit, with a net reduction of 1,350 jobs.

Up to 720 of those roles will be redeployed but another 750 will be achieved by shedding contractors and temporary staff, including 550 offshore positions.

The insurance division will suffer a net loss of 940 jobs, and in retail, a net reduction of 270 jobs will go in mortgage operations.

In a statement, the bank said the impact would be significantly mitigated by redeployment and the release of contractors, temporary staff and offshore personnel.

It said 1,000 of the total role reductions, including about 550 offshore positions, are expected to be achieved by letting go of contractors and temporary staff. There will also be 1,400 redeployed or relocated roles, the bank said.

Mark Fisher, group integration director at Lloyds Banking Group said: “We will continue to work closely with our colleagues affected by today’s announcement to help them through these changes over the coming year.

“We have mitigated the impact on positions through redeployment and the release of contractors and temporary staff.”

However, union Unite denounced the losses as ‘corporate arrogance’.

National officer Rob MacGregor said: “This country’s financial sector should be looking towards the future, rather than continuing to slash jobs without proper consideration of how to rebuild the public’s confidence in our tarnished banking sector.”

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