Further Job cuts and Branch closures at Lloyds

Posted by Neil Greenhill in Banking on 14 November 2016 - Neil is a Senior Credit Analyst at checkmyfile

The Lloyds Banking Groups is set to cut a further 665 jobs and close a further 49 branches as part of its continuing drive to cut costs.

The reductions are part of a 3 year programme to cut costs with a target of cutting 12,000 jobs and closing 400 branches by 2017. So far 9435 jobs have been axed along with 261 branches. These cuts come on top of approximately 45,000 roles being slashed in the years up to 2008 when Lloyds rescued HBOS. Lloyds, which is partly owned by the taxpayer, hopes the closures and reduction in staff will help it to complete a planned return to the private sector.

Lloyds says the branch closures are necessary as the use of branches has been falling for years, they estimate their use has fallen 15% year on year. However, Unions have argued the cuts will have knock-on effects for customers. Rob MacGregor from the Unite union states, “It is alarming that Lloyds are continuing this programme of job cuts and branch closures. Unite have expressed to the bank that these ongoing cuts hurts our members and inevitably impacts customers.”

In total, the main high street banks have closed 1700 branches since 2011 and as a result 1500 communities have been left without a single bank on their high street. The British Bankers Association has recognised the issue commissioning an independent report which found that losing their local bank left some feeling something similar to “bereavement”.

The association has said it will update its guidelines in response to the report and commented that, “we are in the midst of a consumer-led digital revolution in the way we do our day-to-day banking. However, banks are very aware no customer or business should be left behind and branches play an important role in the life of local communities.”

Perhaps in light of this, Lloyds has said it will launch a fleet of “mobile branches” in the form of vans which can visit the communities effect by branch closures. Lloyds have said they aim to have 8 mobile branches on the road and for them to be running by March-April next year.

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