Elizabeth Judge
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Lloyds Banking Group today unveiled plans to cut a further 2,100 jobs in a move condemned by unions as an "astonishing, systematic slashing of staff."
The announcement takes the total cull by Lloyds since it acquired HBOS, and was bailed out by the taxpayer, to more than 7,000 jobs.
The latest cuts include 150 posts in West Yorkshire, 100 in Birmingham and 350 jobs in Scotland. The redundancies will be implemented over the next three years.
In a statement, Lloyds said 700 of the cuts would be achieved by laying-off contract and agency staff and via "natural attrition".
It said the move followed plans to streamline its group and wholesale operations, bringing together "a number of operational support functions".
The bank also sought to appease unions by pledging not to move any more permanent existing roles offshore.
However, Rob MacGregor, national officer at Unite, the union, said: "Unite is astonished that the Lloyds Banking Group is to make a further 2,100 cuts. As a taxpayer supported organisation, real questions need to be asked as to how far this bank can be allowed to go in this systematic slashing of staff."
He said that morale at the bank is now "truly low as employees are in a permanent state of anxiety as they see their employer announce hundreds of job losses every week".
He added: "This Labour Government cannot afford to turn the other way as bank workers across the country are losing their jobs."
As the banking crisis deepened, Lloyds stood out as one of the UK’s more solid banks due, in part, to its conservative approach to overseas expansion and acquisitions.
However, its fortunes changed when it agreed to a government plan to save HBOS - the group made up of Halifax and the Bank of Scotland - from collapse through a £12 billion takeover.
It is widely believed that the deal was personally brokered by Gordon Brown with Sir Victor Blank, the outgoing chairman of Lloyds, during a cocktail party last autumn. Competition rules were waived to help the deal sail through.
The alleged "landmark deal" quickly soured when the true state of HBOS emerged. A large amount of dud loans and ill-advised mortgage lending emerged and shareholders demanded a change in management.
Sir Victor last month announced plans to quit as chairman following the scandal.
Lloyds said that a total 1,400 staff will be axed from its group operations with the remainder going from its wholesale operations.
The bank said all affected staff had been briefed today. The unions, it said, were consulted prior to the announcement.
Mark Fisher, director at group operations in Lloyds, said: "By bringing the businesses together we will be better placed for the future. Regrettably, some of our colleagues will be affected by our plans [and] we understand that this difficult news will be unsettling."
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