Lloyds Banking Group is planning a major restructuring of its workforce, with around 2,000 new digital technology roles predicted to be created.
The banking group, which owns the Bank of Scotland and Scottish Widows, is expected to cut more than 6,000 jobs as part of the £3 billion restructuring but will create 8,000 over the next two years.
Yesterday evening it was reported that current Lloyds employees whose jobs are expected to be cut will be offered the chance to apply for new positions. Programmes to retrain staff are also expected in the near future.
According to reports, job losses at the group will be spread across a number of areas, including:
- The group transformation division
- Corporate banking
- Retail and community banking
In February this year, Lloyds announced it would re-evaluate its strategy alongside the £3 billion investment plan, which is due to run from 2018 to 2020. In conjunction with its restructuring plans, the banking group aims to cut operating costs to less than £8 billion by 2020.
Based on 2017 figures, operating costs at the banking group stood at over £8.2 billion.
Major banks throughout the UK have been reducing branch numbers for several years now as mobile and online banking continues to skyrocket in popularity. The use of cash is also declining in the UK as consumers increasingly rely on their debit or credit cards when purchasing products or services.
With a decline in branch numbers, concerns over job security have been raised. Unite and Accord, Lloyds’ recognised unions, have been consulted on the proposals – which at this point are thought not to include branch closures. Job losses in specific offices may occur, though.
A spokesperson for Unite said: “Unite will scrutinise the detail of the announcement when it is made. Our priority will be to press the company to ensure there are no compulsory redundancies.”