Lloyds Banking Group is planning to cut 1,600 staff from its branch network as it tries to reduce costs and push customers towards digital services as part of a corporate overhaul.
The UK company said it was adapting to a shift in behaviour, with more than 21 million of its 26 million customers choosing to use its services online.
But the job cuts are likely to raise concerns for the 8% of Lloyds customers – about 2 million – who exclusively rely on going into branches to manage their accounts.
The bank will simultaneously create 830 jobs in its relationship growth team – amounting to an overall reduction of about 769 jobs – to provide a hybrid service of in-branch, video or phone appointments for customers. However, there is no guarantee that those new roles will be given to staff whose jobs are being cut.
Lloyds is closing about 114 branches this year, leaving a network of 1,061 sites. The staff cuts will be aimed at senior branch workers, with Lloyds maintaining its most junior roles.
The staff union, Accord, hopes most of the cuts will be on a voluntary redundancy basis, where workers ask to leave and receive some compensation, though it is likely to be offered only in some cases.
In November, Lloyds confirmed plans to slash nearly 3,000 roles from the wider business – excluding its branches – focusing on middle-management roles including analyst and product management posts. Again, the bank said it was creating thousands of positions that would ultimately result in a net 120 roles being added to its workforce.
The job cuts are part of a £3bn overhaul announced under the chief executive, Charlie Nunn, in early 2022 in an attempt to push further into digital banking, bulk up the corporate bank and wealth division, and strengthen Lloyds’ position as a UK landowner.
Commenting on the latest round of job losses, a Lloyds spokesperson said: “As more customers choose to manage their day-to-day banking online, it is important our people are available when it matters most. We are introducing a number of new roles and making changes to our branch teams so our customers can see us how and when they want to.”
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Accord said: “LBG announced significant changes to its branch network structure and ways of working, which it says are necessary because of changes in customer behaviour. The move represents a significant change to the branch networks and our members.”
