17 October 2017

Lloyds TSB details £1.5 billion cost cuts

03 November 2008  |  7524 views  |  0 branch banking

Lloyds TSB says it expects to reap £1.5 billion in annual savings from consolidation of technology, branch closures and job cuts as part of its mega merger with distressed high street rival HBOS.

In a Stock Exchange statement issued Monday, Lloyds TSB detailed a wide-ranging cost-cutting plan for the combined group.

In retail banking, the bank expects to realise £790 million in savings over the next three years as it moves to close branches and call centres and consolidate processing and technology platforms.

Similar exercises across the insurance and investments arms, within wholesale and international banking and through the integration of central and support group functions will lead to a further £710 million in cost synergies.

The plans have raised fears that up to 30,000 jobs could be shed as a result of the merger, although Lloyds TSB has refused to provide any details.

"There will inevitably be some rationalisation of the combined workforce as a result of these initiatives and consultation will take place with, among others, the recognised trade unions in respect of how this can best be achieved," says the bank in its statement.

Finance sector union Unite has called on the bank to come clean about its intentions, and asked the Government to step in to protect jobs. Unite joint general secretary, Derek Simpson, says: "It is completely unacceptable for the banks to continue fuelling speculation while leaving their worried staff in the dark. It is now time to start thinking about the human consequences of this takeover."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Hbos looking to offshore 2000 tech jobs - report

Hbos looking to offshore 2000 tech jobs - report

02 October 2008  |  12740 views  |  0 comments
Lloyds TSB told to ditch offshoring

Lloyds TSB told to ditch offshoring

23 September 2008  |  8349 views  |  0 comments

Related company news

visit www.vasco.comvisit www.capgemini.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
14971 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8228 views comments | 15 tweets | 21 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
7658 views 0 | 7 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
6957 views comments | 13 tweets | 7 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6196 views comments | 8 tweets | 16 linkedin

Featured job

New York, NY - USA (some flexibility on location)

Find your next job