Giant mortgage lender continues cost cutting
Lloyds Banking Group has placed thousands more jobs under review as part, it says, of an effort to enhance its digital banking capabilities and streamline operations.
Last week, approximately 6,000 employees in the bank’s tech and engineering teams were informed that their roles could be impacted by ongoing structural changes. The initiative aims to modernise the bank’s workforce by introducing new positions focused on accelerating technological advancements.
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Despite the potential job cuts, the bank plans to add around 1,200 new roles. A Lloyds spokesperson commented, "Making changes means not only creating new roles and upskilling colleagues but also saying ‘goodbye’ to talented people who have been part of the group’s success in the past. Where that is the case, we will do everything we can to support them with the changes recently announced." The bank hasn’t been clear as to whether any of the 6,000 targeted positions will be suitable to take on the new roles being created.
This restructuring is part of Lloyds’ broader transformation strategy, which has been underway since 2022. The bank’s ‘Platform 3.0’ initiative is designed to bolster digital services, increase efficiency, and maintain a competitive edge against emerging fintech firms. Lloyds, which employs around 66,000 staff, is competing with other major UK banks to expand digital offerings while responding to shifts in consumer banking habits.
As part of its cost-cutting measures, Lloyds recently announced the closure of 136 branches across its brands, attributing the decision to a decline in foot traffic and the rising adoption of mobile banking services. Additionally, the bank has revealed plans to close major offices in Liverpool and Dunfermline, relocating affected staff to Chester and Edinburgh. Many Liverpool employees, particularly those in fraud prevention and customer service, have already transitioned to remote work.
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The restructuring extends beyond technology, with the bank reviewing more than 1,500 roles across various departments, including customer service, digital experience, and sustainability. The changes aim to create efficiencies and support Lloyds’ long-term growth objectives. According to the trade union Accord, most of the affected positions are within middle-management customer relationship roles, though Lloyds has committed to creating 151 new positions to accommodate evolving business needs.
The bank’s approach to hybrid work has also played a role in its transformation strategy. Since 2023, Lloyds has required employees to spend at least 40% of their time in the office, with senior staff’s adherence to this policy now linked to performance-related bonuses. This shift mirrors broader industry trends, with companies like JP Morgan Chase and Amazon implementing stricter in-office attendance policies.
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Despite these workforce adjustments, Lloyds has emphasised its commitment to investing in new technologies and automation to improve the customer experience. The bank has recruited over 10,000 new employees in the past year, including 4,000 engineers, to drive its digital initiatives.
As the UK’s largest retail lender continues its five-year transformation plan, it faces the challenge of balancing modernisation efforts with workforce reductions and employee concerns. By focusing on cost efficiency, digital innovation, and strategic workforce planning, Lloyds aims to position itself as a leader in the evolving financial services sector.
