Lloyds Banking Group has confirmed that 940 jobs are to be axed as the future of employment across the financial services sector grows increasingly uncertain.
Cuts will be made across the retail and wealth divisions, the bank said, as it seeks to cut costs by £1.5 billion by next year.
Jobs are expected to go in the operations side of the business – with 200 job losses in human resources already announced this week – alongside the insurance and commercial divisions.
The news also follows the recent announcement of job-losses at Halifax, with 175 jobs to go across its UK branch network.
Lloyds said that it would offer voluntary redundancy in the first instance, with compulsory redundancies a "last resort".
The bank has come under fire in recent months after revelations that it operated a salespoint system which encouraged staff to employ hard-sell tactics biased towards higher-rewarded products such as packaged bank accounts.
(Check out our feature article, Salespoints, Selling and Scandals: Lloyds TSB, at our Finance Blog).
"Moving up in the world isn't always easy." But jobs at Lloyds' insurance division could be among the 940 to be axed.
Leading union Unite has levelled its fury at Lloyds’ decision to cut jobs, branding the bank a "complete disgrace".
The banking group has shed more than 31,000 jobs – a quarter of the workforce – since its ill-fated takeover of HBOS in 2009.
"It is a complete disgrace that the bank, which is 41% owned by the taxpayer, continues to cut jobs in such a cavalier way", said Unite's National Officer Dominic Hook.
"The bank is even offshoring another 200 IT jobs.
"In the middle of an economic crisis, a bank part-owned by the public, should be keeping jobs in the UK, not exporting them abroad," he added.
"Complete disgrace": Unions blast the part-taxpayer-owned Lloyds for its decision to axe jobs.
Lloyds is not the only bank to consider downsizing. Barclays’ investment banking division has also been told that employees’ jobs are on the line after an internal investigation uncovered serious problems at Barclays Wealth.
The London investment banking arm employees around 10,000 people, but new chief executive Antony Jenkins is keen to trim the division and overhaul the bank’s culture following a number of scandals in which the bank has been implicated (read more).
Up to 18,000 jobs could go across the sector during the next quarter, according to the Confederation of British Industry employers' group and PricewaterhouseCoopers.
Figures show that 25,000 jobs were lost in the past quarter, and analysts have predicted that this momentum will continue despite cautious optimism that business volumes could improve.
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