Lloyds confirms 15,000 job cuts

30 June 2011

Lloyds Banking Group (LBG) has confirmed it is to cut 15,000 jobs as part of a cost-saving initiative.

The financial institution announced plans in a strategic review to reduce its workforce and subsequently deliver savings of £1.5 billion per year by 2014.

Cost savings are expected to be made by streamlining IT platforms, centralising support functions and delayering management structures.

Lloyds is expecting to continue its reduction to exposures of non-core assets as well as cutting back its international presence to less than half of the 30 countries it currently operates within by 2014.

António Horta-Osório, the bank’s new chief executive officer, said the aim was to return the bank to full health and become the “best bank for customers”.

“We will unlock the potential in this franchise over time by creating a simpler, more agile and responsive organisation, and by making substantial investments in better-value products and services for our customers,” he explained.

However, David Fleming, Unite national officer, criticised the bank’s decision to cut jobs.

“The long awaited results of the Lloyds strategic review will cause deep distress and anxiety across the company as staff face the reality of this arbitrary slashing of jobs,” he warned.

The cost of the programme is expected to reach £2.3 billion but will allow the bank to invest £2 billion back into the business between now and 2014.

By Jim Ottewill

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