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The largest High Street lender in Britain is undergoing a reorganization in order to better serve customers who prefer online banking to brick-and-mortar branches. (REUTERS/Toby Melville)
The largest High Street lender in Britain is undergoing a reorganization in order to better serve customers who prefer online banking to brick-and-mortar branches. (REUTERS/Toby Melville)

Lloyds Banking Group Slashing 6,240 Jobs While Creating 8,240 More

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The largest High Street lender in Britain is undergoing a reorganization in order to better serve customers who prefer online banking to brick-and-mortar branches. (REUTERS/Toby Melville)

Lloyds Banking Group has confirmed its intentions to cut 6,240 existing jobs in the U.K. At the same time, it will be creating 8,240 new jobs throughout the overhaul of its digital services.

Old Jobs and New Jobs

Lloyds Banking Group has given official confirmation of its intentions to cut 6,240 jobs. That said, it will also be creating another 8,240 new jobs as it conducts a complete overhaul of its digital services.

The vast majority – 75 percent – of the new positions will be filled by the banking group’s existing staff, said Lloyds. That said, there will be some specialist roles – such as data scientists – that will be filled by outside talent.

Job Transformation

The bank’s branches will remain in place, though its Gillingham site will be closing. The largest High Street lender in Great Britain is undergoing a widespread reorganization in order to better serve customers who prefer online banking to brick-and-mortar branches.

Lloyds underscored that a number of existing jobs will remain intact, though they will be refreshed. Other jobs will be newly created and filled by existing staff members who will be retrained.

“This forms part of the £3bn commitment the group has made to invest heavily in its technology and people over the course of its three-year strategic plan,” said a statement from Lloyds.

Response from Unite Union

The employment shake-up would “undoubtedly hit the morale of staff who have had to endure round after round of job cuts, branch closures and constant upheaval” said Rob MacGregor, Unite union national officer. “Unite will be pressing Lloyds to guarantee no compulsory redundancies and ensure that staff who move into new roles are given the support and skills that enable them to continue delivering the best possible customer service.”

Closing High Street Branches

Although Lloyds has stressed that it will be keeping branches open, other than certain specific closures, it has already shut down many outlets. As a rising number of customers do their banking online using their computers or mobile devices, branch numbers have been shrinking.

Throughout 2018 so far, Lloyds has already pointed to 60 branches it intends to close or has already closed. Last year, it shut down 54 Lloyds branch locations from the Bank of Scotland brand, as well as another 22 branches within the Halifax brand.

Note: The opinions expressed in this article are the author's own and do not necessarily reflect the view of Alvexo on the matter.