Lloyds Bank to cut 1,600 jobs across branches in shift to online banking

Lloyds Banking Group has said it is cutting about 1,600 jobs across its branch network, as part of an ongoing shift towards online banking. Credit: PA

Around 1,600 jobs are to be cut across the Lloyds Banking Group branch network.

It's part of an ongoing shift towards online banking.

The redundancies are not expected to affect the most junior employees and in some situations staff will be offered voluntary redundancy.

The overhaul will also see the banking giant create 830 roles in an expanded “relationship growth” team, where more staff will be available to talk to customers in branches, through video meetings or over the phone.

The group, which owns Lloyds, Halifax, and Bank of Scotland, said just eight per cent of its customers choose to visit high street branches as the sole way to manage their money.

More than 21 million customers use online or mobile banking.

A spokeswoman for Lloyds said: “As more customers choose to manage their day-to-day banking online, it’s important our people are available when it matters most.

“We’re 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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Earlier this month, Barclays said it had cut around 5,000 jobs globally during 2023 to “simplify and reshape the business”.

The bank said the jobs were “removed” as part of its “ongoing efficiency programme” – it is unclear how many of the 5,000 were UK-based.

Barclays said the majority of individuals impacted by the job losses worked in the bank’s support and UK chief operating officer functions as “management layers are reduced” and the group “improves its technology and automation capabilities”.

It comes after the trade union Unite said last year that Barclays had cut 900 jobs in its UK business.

In November, Unite said the jobs would go across a number of back-office divisions and branded the decision to axe staff in the lead-up to Christmas “disgraceful”.

Barclays has cut costs in recent years, and has already seen jobs go across its retail and investment banking businesses.

A Barclays spokesperson said: “Barclays removed approximately 5,000 headcount globally through 2023 as part of its ongoing efficiency programme designed to simplify and reshape the business, improve service, and deliver higher returns.

“The group is also creating capacity to selectively hire front office roles in key businesses.

“The majority of the individuals impacted are within Barclays’ support function, Barclays Execution Services ‘BX’, and the Barclays UK Chief Operating Officer function, as management layers are reduced and the group improves its technology and automation capabilities.

“We are supporting impacted colleagues with training, advice and outplacement services, depending on their location.”

Barclays Execution Services division, known inside the bank as BX, was set up in 2017 to bring together support functions for the bank’s main two businesses – UK retail banking and international.

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