Lloyds Banking Group Plc, the U.K.’s biggest mortgage lender, is cutting about 1,850 jobs in its retail, insurance and administrative units as a result of divisional mergers following the takeover of HBOS Plc.
Once contractors, temporary workers, redeployments and relocations of staff are taken into account, there will be a net loss of 650 full-time jobs, the London-based bank said today in a statement.
“For the staff at Lloyds, today marks the start of another long summer of worry as they now face uncertainty about the security of their job,” Cath Speight, national officer of the Unite trade union, said in a separate statement. Lloyds has announced more than 17,700 job cuts since its takeover of HBOS in January 2009, according to the Unite union, which represents some bank staff.
The bank plans to reduce costs by 2 billion pounds ($3 billion) annually over the next two years as a result of the HBOS takeover. Losses at HBOS led Lloyds bank to cede a 41 percent stake to the government.
The cuts will affect staff in Nottingham and Chester, while some of the roles will be relocated to Warrington and Speke, the bank said.
Lloyds also said it will close 265 Halifax independent agencies, which provide some banking services. The agencies will close in November.
“The number of independent agencies has declined significantly in recent years,” David Nicholson, Managing Director, of Halifax Community Bank, said in the Lloyds statement. “Following the completion of a strategic review, we have now taken the difficult decision that the agencies are no longer integral to our business model.”