The downsizing will come as part of the organisation's integration with HBOS, the bank announced.
Union leaders have been angered by the news, which will see job losses at the organisation increase to 22,000 since 2009.
In a statement, the bank said: "Lloyds Banking Group is committed to working through these changes with employees in a careful and sensitive way."
It explained that all employees affected by the move have now been informed, while all the recognised unions involved with the group were consulted prior to the announcement.
Voluntary severance is to be offered to those who will be required to leave the company, it added.
The Daily Mail recently reported that Lloyds - as well as Barclays, HSBC, RBS/NatWest and Santander - are utilising the money of its customers to build up funds to counter competition from smaller rivals.
By Asim Shah