Lloyds Banking Group says it will cut around 5000 jobs, including information technology positions, from its UK operations by the end of 2010.However, the bank says redeployment and the release of contractors, temporary staff and offshore personnel, means the net reduction will be about 2600 permanent UK jobs.
The bank, 43%-owned by the taxpayer, has already cut over 8000 jobs this year as it integrates the operations of HBOS, which was acquired in January, and tries to reduce costs by £1.5 billion over the next three years.
The latest round of cuts will affect 2820 group operations staff working in IT, collections and recoveries, payment and business services and banking operations roles. Over 720 will be redeployed and 750, including about 550 offshore positions, will be contractors and temporary staff.
Another 1190 positions will go from insurance - 950 from the life, pensions and investments business and 240 from general insurance. Within mortgage operations around 950 roles will be affected as the business is consolidated to seven sites. However, 680 positions will be relocated to a new site or redeployed.
Mark Fisher, group integration director, Lloyds Banking Group, says: "We will continue to work closely with our colleagues affected by today's announcement to help them through these changes over the coming year. We have mitigated the impact on positions through redeployment and the release of contractors and temporary staff."
The move has been condemned by unions, with Rob MacGregor, national officer, Unite, saying: "This Lloyds Banking Group announcement of 5,000 job losses demonstrates the depth of corporate arrogance within this taxpayer-supported bank."
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