Lloyds Bank to cut 6,000 jobs but cre­ate 8,000 new posts in dig­i­tal over­haul

The Irish Times - Business - - BUSINESS NEWS -

Lloyds Bank­ing Group has con­firmed it is to axe 6,240 jobs as part of a dig­i­tal over­haul. The UK lender said that as part of the shake-up it will also cre­ate 8,240 new roles, re­sult­ing in a net cre­ation of 2,000 jobs.

Lloyds said 75 per cent of the new roles would be filled by ex­ist­ing staff, but some spe­cial­ist roles, such as data sci­en­tists and soft­ware engi­neers. would be re­cruited ex­ter­nally. The cuts will fall on back-of­fice roles and not bank branches. Lloyds was among the worst per­form­ers in a EU stress test of banks, the re­sults of which were pub­lished last week.

A Lloyds spokesman said: “Lloyds Bank­ing Group has to­day an­nounced it will cre­ate an ad­di­tional circa 2,000 roles as it strength­ens its ca­pa­bil­ity to of­fer cus­tomers new lead­ing-edge dig­i­tal bank­ing prod­ucts and ser­vices.

The group is in­vest­ing to fur­ther digi­tise the bank, and will re­fresh some ex­ist­ing roles and cre­ate new roles, while also pro­vid­ing com­pre­hen­sive re­train­ing for col­leagues to help them build their ca­pa­bil­i­ties to meet the de­mands of these fu­ture roles.”

The move is part of a £3 bil­lion com­mit­ment from Lloyds to in­vest heav­ily in tech­nol­ogy as part of its three-year strate­gic plan un­der chief ex­ec­u­tive An­to­nio Horta-Os­o­rio.

Mod­erni­sa­tion drive

Lloyds has now an­nounced nearly 10,000 job cuts in the 20 months since the British gov­ern­ment sold off its stake in the lender to take it fully pri­vate. The bank’s ef­fi­ciency and mod­erni­sa­tion drive has con­tin­ued apace since it was taken off the pub­lic books in May 2017, with Lloyds say­ing a busi­ness over­haul and re­duc­tion of its branch net­work was es­sen­tial to en­sure it stayed rel­e­vant amid a dig­i­tal shift.

At its peak Lloyds was 43 per cent owned by the British state. The bank raked in £1.82 bil­lion of profit in the three months to Septem­ber 30th, leav­ing unions to ques­tion the job cuts.

Unite na­tional of­fi­cer Rob MacGre­gor said: As the prof­its stack up for Lloyds, so does the un­cer­tainty for loyal staff who work hard to serve cus­tomers. This lat­est an­nounce­ment will un­doubt­edly hit the morale of staff who have had to en­dure round af­ter round of job cuts, branch clo­sures and con­stant up­heaval.

“The news of ad­di­tional jobs will prove to be a bit­ter pill for work­ers at Lloyds’ Gilling­ham site clo­sure. These hard-work­ing staff face lim­ited op­por­tu­ni­ties for re­de­ploy­ment, while other work­ers around the coun­try could ef­fec­tively be forced out of a job be­cause they are un­able to travel or move to where the new roles are lo­cated.

“Unite will be press­ing Lloyds to guar­an­tee no com­pul­sory re­dun­dan­cies, and en­sure that staff who move into new roles are given the sup­port and skills that en­able them to con­tinue de­liv­er­ing the best pos­si­ble cus­tomer ser­vice.” – Reuters

Unite will be press­ing Lloyds to guar­an­tee no com­pul­sory re­dun­dan­cies

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