Giant UK lender reviews over 1,000 roles as part of restructuring plans
Lloyds Banking Group, one of the UK's largest high-street banks, has announced plans to reduce its workforce by approximately 500 roles and close two major offices as it advances its £4 billion strategy to modernise operations and enhance digital capabilities.
In an internal announcement on Wednesday, the bank revealed its intention to review over 1,500 roles across several departments, including customer service, digital experience, sustainability, and marketing. These changes are part of a wider restructuring initiative aimed at streamlining operations, creating efficiencies, and delivering on ambitious growth targets outlined in its 2022 strategic plan.
According to Accord, the trade union representing Lloyds employees, some of the affected roles include operations staff and a smaller number of positions within its sustainability and commercial banking teams.
While the cuts will predominantly affect middle-management customer relationship roles, Lloyds said it also plans to create 151 new positions to support its evolving business needs.
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Lloyds stated, “To achieve the ambitious strategy we launched in February 2022 and deliver a better service to our customers, we are transforming our business.” The bank emphasised that while changes bring opportunities for some employees through new roles and upskilling, they also result in difficult decisions regarding redundancies.
“Where that is unfortunately the case, we will do everything we can to support them with the changes recently announced.”
Office closures and hybrid working
As part of the restructuring, Lloyds plans to close its offices in Liverpool and Dunfermline, relocating affected employees to its Chester and Edinburgh locations.
Most staff in Liverpool, which focuses on fraud prevention and customer services, have already transitioned to remote working, according to a source familiar with the matter.
Dominic Hook, national officer for the Unite union, criticised the closures, calling the decision to shut the Liverpool Speke centre a “huge mistake” with significant regional impacts.
The move aligns with Lloyds’ ongoing efforts to adapt its workforce to hybrid working arrangements. Under a policy introduced in 2023, employees are required to spend at least 40% of their working time in the office, with senior staff’s adherence to this policy now influencing their performance-related bonuses.
Broader industry trends
The bank’s changes reflect wider industry shifts, as many companies reassess remote work policies established during the COVID-19 pandemic. Major employers, such as JP Morgan Chase and Amazon, have tightened in-office attendance requirements, while others, like Asda and Santander, have implemented similar hybrid working policies.
Ged Nichols, general secretary of Accord, emphasised the importance of fairness in implementing such policies: “The inclusion of a metric on complying with the requirement for some staff to attend offices for 40% of their working time should not create problems if it is applied fairly, and is sensitive to individuals’ circumstances with mature and reasonable judgments applied.”
Looking ahead
Lloyds’ restructuring efforts also include revising its bonus structure. In a notable shift, the bank has introduced higher bonus potential for its 33,000 lowest-paid employees, rewarding exceptional performance and contributions to the business. Nichols welcomed the move but stressed that these higher awards should not come at the expense of standard bonuses for other staff.
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The job cuts and operational changes form part of a five-year plan to reduce reliance on interest-rate-driven revenue and focus on cost efficiency and digital innovation. As the UK’s largest retail lender approaches the final phase of its transformation strategy, the bank’s decisions underscore the challenges of balancing modernisation, workforce adjustments, and employee satisfaction in a rapidly evolving industry.
