Wednesday 12 October 2016 11:22 am

Lloyds Banking Group drops over 1,000 jobs

Lloyds Banking Group is cutting over 1,000 jobs as part of its previously announced three-year strategy.

Although the bank is culling 1,340 positions in total, it is also creating 110 new roles, bringing the net jobs lost to 1,230.

In October 2014, the bank announced it would be cutting 9,000 roles over a three-year period. In July of this year, the company revealed it would be slashing a further 3,000 jobs by the end of 2017.

The job losses announced today are across the bank's group operations, retail, customer products and marketing, finance and risk divisions, and affected staff are being briefed by their line manager today.

Accord and Unite have been consulted and discussions with the two unions will continue.

"This process involves taking difficult decisions, and we are committed to working through these changes in a careful and sensitive way," the bank said in a statement.

The bank noted it would look to natural turnover to account for job losses and try to offer those affected other jobs within the group or offer voluntary redundancy as far as possible, adding it would only use compulsory redundancy as a last resort.

Dubbing today's announcement "horrific news for staff", Rob MacGregor, Unite national officer, noted the union would "will oppose all job losses and challenge senior management to ensure all those affected by this latest round of announcements be offered alternative suitable employment".

"The constant flow of job cuts across [the group] must now be halted and staff be allowed to get on with delivering the high quality and impressive service they are so good at providing," added MacGregor.

Meanwhile, Accord's general secretary Ged Nichols said: "We're deeply concerned that both the scale and the pace of job reductions are increasing. We know the outlook for banks is tough due to record low interest rates, falling revenues and the changes in technology and customer behaviours.

"But this 'death by a thousand cuts' approach does nothing to give confidence to those who will be staying with the business, trying their best to meet customers’ needs and help to sustain the group for the future."

Accord also noted Nichols would be meeting with Lloyds chief executive Antonio Horta-Osorio in November to discuss the business environment and future prospects.

Shares in the bank are trading down 1.7 per cent at 52.72p at time of writing. The bank is due to release its third quarter statement on 26 October.