Finance News

Lloyds Banking Group to cut 15,000 jobs

Lloyds Banking Group Plc, Britain's biggest mortgage lender, will cut 15,000 jobs and reduce costs by an additional 1.5 billion pounds as it withdraws from overseas units and increases its U.K. focus.

António Horta-Osório, Chief Executive Officer, said the job losses would involve staff reductions across the bank's business and a large-scale cull of its middle management as well as a withdrawal from several of its international businesses.

"We have to do this because this bank is losing money on an after-tax basis. We have to get this bank back on its feet," said Mr Horta-Osório. "I'm sure our staff are going to see we have a clear strategy for the future."

The cuts are part of a wider review of Lloyds operations that will see the bank invest 500 million pounds of its annual cost savings in initiatives such as revitalising its Halifax brand and building up the wealth management business.

The job cuts come on top of 27,500 losses already announced since its troubled rescue of HBOS in 2008.

Lloyds added that it remained committed "to keeping total branch numbers at the same levels," although this excludes the 632 branches Lloyds is commited to sell under a European competition ruling, known as "Project Verde".

HSBC, Europe's biggest bank, also said on Thursday that it would cut 700 UK jobs, including 460 in its financial advice division ahead of changes to advice rules in 2013, together with 140 in IT and 100 other head office roles.

Unions accused HSBC of trying to bury its job cuts on the same day as the Lloyds strategy review was released.

Source: The Telegraph
Date: 01.07.2011 [ID: 299]

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