Lloyds Banking Group has announced plans to cut 1,600 jobs across its branch network as part of a cost-cutting drive and a shift towards digital banking. The move comes as the bank adapts to changing customer behaviour, with over 21 million of its 26 million customers now using online services.
However, the job losses are likely to raise concerns for the approximately 2 million customers who rely exclusively on branches to manage their accounts. Lloyds is closing around 114 branches this year, leaving 1,061 sites. The cuts will target senior branch workers, while junior roles will be maintained.
At the same time, the bank is creating 830 new roles in its relationship growth team, offering a hybrid service of in-branch, video, or phone appointments. This results in a net reduction of about 769 jobs, though there is no guarantee that affected staff will be offered the new positions.
The staff union Accord expressed hope that most cuts would be voluntary, with compensation offered to those who choose to leave. The restructuring is part of a £3bn overhaul announced in early 2022 by chief executive Charlie Nunn, aimed at expanding digital banking, corporate banking, and wealth management.
A Lloyds spokesperson said: 'As more customers choose to manage their day-to-day banking online, it is important our people are available when it matters most. We are introducing a number of new roles and making changes to our branch teams.'
