Lloyds job cuts reach 38,000 since HBOS rescue as 940 more roles go

Latest cuts are part of ongoing programme of staff reductions introduced by CEO Antonio Horta-Osorio after 2011 appointment

The job toll at Lloyds Banking Group since the rescue of HBOS has reached 38,000 after another 940 cuts were announced.

“This is a bleak start to the year for hard-working Lloyds employees and bad news for the UK economy on a day when the small fall in the numbers unemployed was supposed to be good news,” Ged Nichols, general secretary of the Accord union, said.

The bailed out bank said the latest cuts would take place across the group in operations as diverse as insurance, retail, wealth, international and commercial, with the highest concentration in Scotland where 230 roles will be lost.

Nichols was also angry that 200 positions were being taken offshore to India, and said the bank should “think of the public interest” before taking such decisions.

The latest staff cuts are part of an ongoing programme to cut 15,000 jobs implemented by Antonio Horta-Osorio after he was appointed chief executive in 2011. Some 8,000 have already been cut, with the rest to be announced before the end of 2014. Nichols expects another 5,000 jobs to go this year.

Some 30,000 roles had already been lost following the rescue of HBOS in October 2008. The cuts should help Lloyds achieve annual savings of £1.5bn in 2014, on top of £2bn achieved through integration.

“The impact on the staff morale of this axe hanging over them is awful. At some stage Lloyds is going to have to focus on re-engaging staff in the interests of its customers and the economy instead of continually bleeding jobs. “Accord believes that this can only come through having highly motivated, professional employees who are free to concentrate on their jobs instead of worrying about job security,” Nichols said.

Lloyds said it was “committed to working through these changes with employees in a careful and sensitive way … The group’s policy is always to use natural turnover and to redeploy people wherever possible to retain their expertise and knowledge within the group”.

Barclays is also moving roles to India as part of the restructuring of its investment bank.

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