Lloyds confirms 5,000 jobs to be affected in revamp (Roundup)

Nov 10, 2009, 13:18 GMT

London - Lloyds Banking Group confirmed Tuesday earlier reports that some 5,000 jobs would be affected amid the integration of three business unit operations by the end of 2010.

In a statement, the bank contended that the cuts would be 'significantly mitigated' through redeployment of some employees and the release of contractors, temporary staff and offshore staff.

'Taking these mitigating actions into account means there will be a net reduction of about 2,600 permanent jobs across the UK by the end of 2010,' Lloyds said.

The statement said that 2,820 'roles' would be affected in Lloyds' group operations, including 720 to be redeployed. A further 750 reductions would be achieved by releasing contractors and temporary staff, leading to a net reduction of 1,350 jobs in group operations, Lloyds said.

Insurance operations would see 1,190 jobs affected in Britain, while mortgage business operations will see some 950 jobs affected.

Lloyds said employees to be affected had been notified by management and that the unions were consulted during the process. The company said its policy 'is to use natural turnover and to redeploy people wherever possible' in its revamping.

'Compulsory redundancies will be a last resort,' Lloyds said, noting how it hopes to achieve some reductions through voluntary severance and using fewer contractors and agency colleagues.

Group integration director Mark Fischer said that 'today marks another important step in bringing our businesses together. In addition, our commitment is to keep colleagues fully informed about our integration plans.' He promised the company would 'continue to work closely' with those affected by the plans.

Earlier this year, around 7,000 jobs were cut after the completion of Lloyds' merger with ailing bank HBOS, leaving Lloyds with around 130,000 employees.

Meanwhile Unite trade union official Rob MacGregor called for the immediate suspension of all job losses in order for the company to introduce an agreement with the union of no compulsory redundancies in any section of Lloyds.

   Unite said the fresh job cuts would be a 'bitter blow' for staff, just days after 5,400 jobs were cut in two other banks - RBS and HSBC.

   This country's financial sector should be looking towards the future, rather than continuing to slash jobs without proper consideration of how to rebuild the public's confidence in our tarnished banking sector,' MacGregor said.