According to Sky News, the bank is expected to announce the details of the job losses today as it attempts to cut costs and continue its shift online.
Advertisement
The 1,000 job cuts are part of an overall target of 9,000 redundancies announced about a year ago when the state-backed bank said that it would close about 150 branches as part of a digital revamp. Societe Generale restated a “buy” rating on shares of Lloyds Banking Group PLC in a report on Wednesday, September 9th. In total there will be around 9,000 jobs lost, with the goal of achieving savings of around £1bn a year.
Under Antonio Horta-Osorio, Lloyds’ chief executive, the combined bank has gradually returned to profits, with taxpayers making a small profit by selling shares.
The announcement comes just after chancellor George Osborne repeated in his Autumn Statement his plans to shed the government’s current 10 per cent stake in Lloyds. Lloyds as part of its transformation is investing £1.6bn in increased automation and digital services. Although this is created to improve customer services, it is resulting in less need for as many employees.
Lloyds’ closures will mainly affect urban areas where there are already high concentrations of its outlets.
“The next phase of our strategy will use these strong foundations as a basis for meeting the rapidly-changing needs of our customers, and sets out how we will grow the business in a way that will deliver increasing and sustainable returns for our shareholders”.
Advertisement
Lloyds Banking Group declined to comment, with a spokesperson from the bank telling City A.M.
