Lloyds Banking Group has announced it will be reducing its workforce by approximately 1,600 positions across its branches, attributing the decision to a shift towards online banking among its customers. Despite the job cuts, the banking conglomerate, which is the parent company of Halifax and Bank of Scotland, plans to introduce 830 new roles, resulting in a net loss of 769 jobs.
The bank emphasized, “It’s important our people are available when it matters most,” indicating the cuts would spare junior-level employees and that some would be offered voluntary redundancy.
Highlighting a change in customer banking habits, Lloyds reported that over 21 million of its customers are now banking online or via mobile apps, with only 8% relying solely on branch banking for their financial needs.
The newly created positions will be part of the bank’s relationship growth team, aiming to enhance customer interactions through video meetings or phone calls in branches, reducing the wait time for appointments.
Accord Union, representing over 22,000 Lloyds Banking Group and TSB staff, acknowledged the significant impact these changes would have on the branch network and its members. “The aim is to get all customers using digital first although the bank accepts that not all customers have the tools or the appetite to switch,” the union commented, noting that the restructuring, particularly changes in management structures, would lead to redundancies, primarily through voluntary redundancy.
This move by Lloyds follows a trend among High Street banks reducing their workforce and closing branches as digital banking gains popularity. In 2023, Barclays, NatWest, Virgin Money, Ulster Bank, and RBS all announced branch closures, with Metro Bank and Barclays also implementing significant job cuts.
Since February 2022, Lloyds has been adapting its operations, recently disclosing plans to shut an additional 45 branches. The closures, involving 22 Halifax, 19 Lloyds, and four Bank of Scotland branches, are scheduled in two waves, with the first in March and April and the second in August and November. However, affected employees will be given the opportunity to transition to other branch locations or different business areas, avoiding compulsory redundancies.
This strategy will result in a total of 276 branch closures by Lloyds group, leaving 515 Lloyds Bank, 413 Halifax, and 133 Bank of Scotland branches in operation.
