Lloyds Bank, one of the ‘Big Six’, is set to cut 3000 more jobs- additional to cuts made previously; 9000 redundancies are already being carried out. The job cuts are despite a reported 101% increase in pre-tax profits for the half year to the end of June 2016. Still, Lloyds doesn’t seem to be lingering on these figures as it also plans to double its original branch closure plan. These changes from one of the UK’s top banks will cause much upset to those employed in the company currently. Perhaps looking for alternative employment would be sensible- especially since 200 Lloyds branches are set to vanish from High streets by the end of next year.
So why are jobs being cut and branches being shut by Lloyds bank?
The company puts the new measures down to:
1. Changes in people’s banking habits
2. The effects of interest rates remaining low in the wake of Brexit
The recent profits rise of Lloyds Bank, suggestive of the fact cuts are not needed, was largely due to a sharp drop-off in PPI compensation payouts. Previous profits had been dented by PPI h which has cost the bank more than £16bn since 2011.
Between April 2015 and 2016, The Lloyds Group which is inclusive of Halifax and the Bank of Scotland had closed over 50 branches. While this, in addition to the 200 possible closures of Lloyds Bank branches by the end of 2017 is a great number, there were 150+ closures between April 2015 and 2016 by the RBS Group (inclusive of Natwest).
Source: BBC News
The Lloyds Group’s branches shut between April 2015 and April 2016