Lloyds Banking Group has announced plans to cut 1,600 jobs throughout its branch network in response to a shift to online banking. However, it has said that an additional 830 roles will be created, resulting in a net reduction of 769 jobs. Lloyds stated that voluntary redundancy will be offered to some staff members, and that they are exempt from junior staff reductions. The bank revealed that its restructuring was a response to changing customer behavior, with over 21 million customers managing their finances online or via mobile apps.
The majority of banks on the high street – such as Barclays, NatWest, Virgin Money, Ulster Bank, and RBS – have been announcing job cuts and closing branches in recent years. Metro Bank plans to cut 20% of its workforce, while Barclays cut thousands of jobs globally in a significant cost-cutting drive. Lloyds has been announcing changes to the business since February 2022, with 45 bank branches being closed. Most of the 22 Halifax branches, 19 Lloyds, and four Bank of Scotland branches will shut in March and April, and the remaining will be closed in August and November. However, no compulsory redundancies are planned, and those affected will be offered roles at other branches or in a different area of the business.
Lloyds said that the new 830 jobs will be created within its relationship growth team, which will enable more staff members to communicate with clients in branches via video meetings or phone calls. This move is an attempt to reduce waiting periods for appointments and improve services for customers. Additionally, the bank has stated that it is important for its staff members to be available when it’s needed the most.
To manage client finances, just 8% of Lloyds’ customers choose to use a branch exclusively. As the bank has already closed over 276 branches, they have made it clear that restructuring is necessary in response to an increase in online banking. The banking group plans to close approximately 60 more branches via its recent announcement
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