Tags: Lloyds | Jobs | Britain | mortgage

Lloyds Said to Cut Thousands of Jobs in Biggest Round Since 2011

Monday, 06 Oct 2014 08:11 AM

Lloyds Banking Group Plc, Britain’s largest mortgage provider, is poised to eliminate thousands of jobs in what may be the biggest round of cuts since at least 2011, a person familiar with the matter said.

The bank will shut branches as part of efforts to automate its entire business, with job cuts expected in areas such as mortgage processing and new account opening, said the person, who asked not to be identified because the strategy isn’t finalized. Some people may be able to assume new roles in the revamp instead of losing their jobs, the person said.

Lloyds Chief Executive Officer Antonio Horta-Osorio has been seeking ways to bolster earnings growth to help return the lender to full private ownership. The bank has eliminated more than 37,000 jobs in the aftermath of its government bailout in 2008, according to data compiled by Bloomberg, with some 15,000 cuts announced in 2011 as part of an effort to lower costs by 1.5 billion pounds ($2.4 billion).

The shares fell 0.3 percent to 77.01 pence at 10:18 a.m. in London. They have dropped 2.4 percent this year, giving the company a market value of about 55 billion pounds. Royal Bank of Scotland Group Plc, which was also rescued by taxpayers during the financial crisis, has advanced 9 percent, the best-performing U.K. lender.

The Times reported the plans earlier Monday. Ian Kitts, a London-based spokesman for the lender, declined to comment.

Digital Strategy

The so-called digital strategy is part of a three-year plan and will be presented alongside the third-quarter results on Oct. 28, said the person.

Call-center staff may face job cuts as customers increasingly use Internet and mobile applications to communicate with the bank as opposed to telephone services. The final decision on the number of jobs to be eliminated hasn’t yet been made, according to the person.

Lloyds spun out 631 branches when it sold shares in TSB Banking Group Plc in June. The lender still has a network of more than 2,000 branches throughout the U.K. with some 88,000 full-time employees, according to its website.

While Lloyds reported a 32 percent gain in first-half earnings supported by a U.K. housing boom and a strengthening economy, past misconduct has added to legal costs. The bank dismissed eight employees and reclaimed their bonuses after it was fined 226 million pounds for rate-rigging in July.

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Lloyds Banking Group Plc, Britain's largest mortgage provider, is poised to eliminate thousands of jobs in what may be the biggest round of cuts since at least 2011, a person familiar with the matter said.The bank will shut branches as part of efforts to automate its entire...
Lloyds, Jobs, Britain, mortgage
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2014-11-06
Monday, 06 Oct 2014 08:11 AM
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