Lloyds cuts wealth jobs in business overhaul

Lloyds cuts wealth jobs in business overhaul

Lloyds Bank is axing nearly a thousand jobs across six divisions, ahead of the announcement of a new strategy later this month.

The bank is cutting jobs across six divisions including business banking, insurance and wealth management, but is creating more than 400 jobs elsewhere.

The cuts are separate to the new three-year strategy, which is due to be rolled out by chief executive António Horta-Osório later this month.

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Unions are being consulted on the cuts, and are expecting to be fully briefed after the full-year figures are announced on 21 February.

The highest number of jobs being cut and created will be in the commercial banking and information divisions, and no high-street customer roles will be affected.

A spokesman for Lloyds said only a handful of wealth roles would be axed.

Lloyds said in December it was axing 49 branches.

The company said compulsory redundancy would be "a last resort".

A spokesman for the bank said: "Last month, Lloyds Banking Group announced 465 net role reductions. The majority of the reductions were within commercial banking, the chief information office, risk, community banking and insurance and wealth.

"The net total is inclusive of 465 new roles that will be created across our business areas

"This process involved making difficult decisions, and we are committed to working through these changes in a careful and sensitive way. All affected employees have been briefed by their line manager. Accord and Unite were consulted prior to this announcement and will continue to be consulted.

"The group's policy is always to use natural turnover and to redeploy people wherever possible to retain their expertise and knowledge within the group.

"Where it is necessary for employees to leave the company, we will look to achieve this by offering voluntary redundancy. Compulsory redundancies will always be a last resort."

Lloyds was bailed out during the credit crisis 10 years ago in a £20bn rescue, but returned to full private ownership in May with the sale of the last of the government's shares in the bank. 

The company changed its management structure last summer in preparation for the transformation that will be announced this month.

Mr Horta-Osorio said at the time that the bank will pursue a strategy of being a simplified, low-risk lender focussed on the UK.

This article was updated on 6 February with additional comment from Lloyds.