Lloyds ramps up cost-cutting measures, axing 1,000 more jobs
Lloyds is set to axe over 1,000 jobs, as Britain’s biggest domestic lender ramps up cost-cutting efforts despite returning to profitability during the third quarter.
Lloyds will cut 1,070 roles across its commercial and retail bank and has announced plans to create 340 new positions.
Read more: Lloyds profit beats forecasts on pandemic mortgage boom
Lloyds last week posted expectation-beating results for the third quarter after cashing in on booming demand for mortgages.
Lloyds returned to profitability during the quarter to September, reporting a pre-tax profit of £1bn following an unexpected loss in the first half of 2020.
“This morning we shared changes to some of our teams and we can confirm a net reduction of c730 roles,” a Lloyds spokesperson said. “These changes reflect our ongoing plans to continue to meet our customers’ changing needs and make parts of our business simpler.”
The spokesperson said that the majority of staff made redundant would not leave Lloyds until “January at the earliest”, adding: “We will help colleagues who are affected find new roles and redeployment opportunities wherever possible”.
The Unite union condemned the job cuts, and urged Lloyds to reconsider the measures in light of last week’s results.
“Unite cannot comprehend why [Lloyds] would choose to cut 1,000 staff who have given the bank such commitment and dedication during a global pandemic,” said union officer Rob MacGregor.
“It is impossible to reconcile the job losses announced today with such an improved balance sheet,” he added.
In October, Lloyds resumed plans to cut 780 jobs as part of a restructuring effort. The cost-cutting plans had been put on ice in March amid the initial impact of the pandemic.
Unite called on Lloyds to pause its restructuring plans amid the crisis caused by Covid-19.
“We need a fresh approach to the unprecedented challenges that Covid-19 has created for all of us,” said MacGregor.