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Lloyds bank to axe 625 positions | Lloyds bank to axe 625 positions |
(10 minutes later) | |
Lloyds Banking Group has announced it is cutting 625 jobs in the UK. | Lloyds Banking Group has announced it is cutting 625 jobs in the UK. |
The job losses are due to the bank merging its corporate and small-business lending units together. | The job losses are due to the bank merging its corporate and small-business lending units together. |
Lloyds said the job losses will be evenly split between Scotland and England & Wales. The UK Treasury owns 43% of Lloyds. | Lloyds said the job losses will be evenly split between Scotland and England & Wales. The UK Treasury owns 43% of Lloyds. |
The move comes days after its chairman Sir Victor Blank said he would step down, following criticism of losses stemming from the decision to buy HBOS. | The move comes days after its chairman Sir Victor Blank said he would step down, following criticism of losses stemming from the decision to buy HBOS. |
HBOS losses | |
Lloyds said it would be creating 300 new positions inside its new wholesale banking department, and some of those made redundant will be "considered" for the new roles. | Lloyds said it would be creating 300 new positions inside its new wholesale banking department, and some of those made redundant will be "considered" for the new roles. |
The bank is embarking on a strategy of 'death by a thousands cuts' Rob McGregor, Unite class="" href="/1/hi/business/7839361.stm">See the BBC's job tracker | |
Lloyds agreed to buy HBOS in September, and later reported that it made almost £11bn in losses from its acquisition. | |
The government subsequently agreed to insure £260bn of the bank's toxic loans, and to potentially raise its stake in the bank to 65% following the losses. | |
Lloyds last month announced it is to cut 985 jobs over the next two years at its business offering car finance. | |
"This latest decision to announce 625 job losses appears to suggest that the bank is embarking on a strategy of 'death by a thousands cuts'," said Rob MacGregor, an officer for the Unite union. | |
"The union will not accept a situation where the Lloyds makes weekly announcements of hundreds of job losses," Mr MacGregor added. | |
"Staff must be told the company's plans for the future of the organisation and not be left with the uncertainty that they could be the next to lose their jobs." | "Staff must be told the company's plans for the future of the organisation and not be left with the uncertainty that they could be the next to lose their jobs." |
Lloyds said its wholesale arm has about 800,000 commercial and corporate customers. | |
Shares in the bank have dropped by 27% this year, prior to Sir Victor's announcement he would step down, as investors worried about how soon the bank would return to profitability. | |
Lloyds is expected to make further losses this year. |
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