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Lloyds Bank to cut 865 jobs in restructuring plans made pre Covid

Lloyds Bank will cut 865 jobs in its insurance, wealth and retail teams as it revives restructuring plans made before Covid pandemic

  • The job losses included 780 cuts that were put on hold because of the pandemic 
  • News comes after Natwest Group and Co-operative Bank announced job cuts 
  • Unite union national officer worried workers thrown into a chaotic job market

Lloyds Bank plans to shed hundreds of jobs as it works to simplify the business after putting plans on hold for several months due to Covid-19.

The bank said it will slash 865 jobs mainly in its insurance, wealth and retail teams.

The cuts will lead to a net reduction of 639 in Lloyds’ headcount as the bank has also created 226 jobs.

More unemployment misery for hundreds as Lloyds Bank announces plans to cut 865 jobs. The job loss plans were put on hold in February before the pandemic hit

Earlier on Wednesday, Lloyds indicated the job losses included 780 cuts that were announced in February but put on hold because of the pandemic.

It has now clarified the new reductions are on top of the 780 already planned.

Unite union national officer Rob MacGregor said he is worried about the prospects for workers who are being let go in a chaotic jobs market.

New data released this week shows more than 300,000 jobs were put at risk of redundancy in June and July – nearly seven times higher than last year’s levels.

The devastating news comes just two weeks after the Co-operative Bank revealed it was to axe around 350 jobs from up and down the country and close 18 branches after falling victim to Britain’s coronavirus jobs bloodbath.

And last month Natwest Group announced it too was cutting 550 jobs in branches across the UK and closing one of its remaining offices in London.

The bank, formerly known as RBS, said the cuts would be made through voluntary redundancies and there would be no branch closures.  

The Co-operative Bank is to axe around 350 jobs across the country with roles in middle management and head office affected

Mr MacGregor said: ‘While the creation of 220 jobs is to be welcomed, this will be no comfort to those members of staff who will from today face an uncertain future.’

He asked bosses at Lloyds to ensure everyone who is hit by the cuts is given the option to get a new job at the bank.

‘Unite is adamant that it is totally unacceptable that LBG persists in putting undue pressure on those who remain working for the bank by making hundreds more of their fellow workers redundant on a regular basis,’ Mr MacGregor said.

‘The pandemic has demonstrated the amazing resilience and flexibility of this workforce.

‘The employer should not focus solely on cutting jobs and costs but instead the bank should invest in a workforce that has only shown loyalty, dedication and hard work through the good times and the bad.’

Lloyds said it is pushing ahead with changes that had already been announced earlier this year.

Shortly after the pandemic hit the bank paused plans to simplify its business.

‘This included continuing to pay colleagues in full regardless of their working circumstances and pledging that anyone placed on notice of redundancy would not leave the group before October, both of which we remain fully committed to,’ the company said.

‘Following changes announced today, we can confirm a net reduction of 639 roles. These changes primarily reflect our existing plans to simplify parts of our businesses, which were in place prior to Covid-19.’

No-one will leave the company before November, Lloyds added.

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