In another bad week for the banking sector Lloyds has announced the closure of four of its offices putting up to 1,000 jobs at risk. The move by the partially state owned bank is part of wider restructuring plans put in place last year. The job losses, described by a Lloyd’s spokesman as “role reductions”, come in the group’s operations, executive functions and insurance divisions. The bank says it will redeploy where possible and hopes to avoid compulsory redundancies.
Lloyds, which was bailed out in 2008 and is 40% owned by the tax payer, has earmarked offices in Dudley, Romford, Newcastle-upon-Tyne and Scunthorpe for closure. The bank has already shed over 30,000 jobs since its takeover of Halifax Bank of Scotland (HBOS) three years ago incurred huge losses. Last year Chief Executive, Antonio Horta-Osorio said the bank planned to cut a further 15,000 jobs as part of a strategy designed to save £1.5 billion a year. Lloyds currently employs 100,000 people.
Unions have described the office closures as a “devastating blow” to workers and warn that in the current economic climate even those accepting voluntary redundancy will struggle to find alternative employment in areas hit hard by the recession. Ged Nichols, general secretary of banking union Accord, said: “Newcastle, Romford and Scunthorpe are areas that cannot afford to lose the high-quality jobs that will go as a result of today’s announcement.” He also called on Lloyd’s management to work alongside the union to provide support and advice to those affected.
Last month it was announced that Antonio Horta-Osorio would not take his bonus for 2011. Mr Horta–Osorio, who has a basic salary of £1.06 million per year, said his bonus should reflect the “tough economic circumstances many people are facing.” His decision followed a two month leave of absence as a result of stress related illness which he conceded had a negative impact on the group’s performance.
In other banking news the owner of Clydesdale and Yorkshire banks has cast doubt over the future of 8,000 employees in the group’s offices and 337 commercial property branches. National Australia Bank (NAB) has given itself until May to complete a review of its UK operations and reports from Australia suggest the bank could be considering a complete withdrawal from the UK as a result of continuing poor trading conditions.
Meanwhile the Co-operative bank is poised to buy over 600 high street branches from Lloyds. In a similar move a further 318 commercial properties are due to change hands in a deal between Santander and the Royal Bank of Scotland.
Previous Post
Busy Year for Commercial Property Don Valley Stadium
