Lloyds Banking Group has confirmed 9,000 job losses and the closure of 150 branches over the next three years. The group, which operates the Lloyds Bank, Halifax and Bank of Scotland brands, stated that under a new strategy its new focus will be on digital, with plans to invest about £1 billion to deliver simple and efficient digital products and services for customers across the businesses.
Lloyds chief, Antonio Horta-Osorio, said:
Over the last three years the successful delivery of our strategy has ensured that we have become a safe, highly efficient, UK-focused retail and commercial bank.
The next phase of our strategy will use these strong foundations as a basis for meeting the rapidly-changing needs of our customers, and sets out how we will grow the business in a way that will deliver increasing and sustainable returns for our shareholders.
Outlining a new three-year strategy for the bank, Horta-Osório explained:
This is a highly competitive market and customers behaviour are changing. Increasingly our customers want to access ours services in many different ways, via branches, via digital or via mobile.
Regrettably this would require 9,000 job cuts from the 85,000-strong workforce as the business was digitised.
The job losses – around 10pc of its total workforce – will see some staff deployed in new roles.
We will continue to look to redeployment and natural turnover as the main way to achieve this, he continued.
Over the next three years we intend to adapt to the changes in financial services brought about by technology, changing customer behaviour and increasing regulatory requirements at a time when traditional competitors’ strategies converge and new entrants compete for customers.
Lloyds Banking Group’s 9,000 extra job cuts will bring the total to 52,000 since 2008. In total, 200 branches will close (6% of branches), but the opening of 50 new ones will mean a net loss of 150.
Photograph: Alastair Grant/AP