Lloyds Banking Group to axe 625, ABN Amro to axe 6,500

| May 19, 2009

Just a day after Lloyds Banking Group announced it would tap investors for £4 billion and chairman Sir Victor Blank announced his resignation, the bank continues to dominate the headlines with plans to axe 625 UK jobs.

Lloyds, which is 43% state-owned, said the jobs will be evenly split between Scotland and England & Wales and are as a result of the bank combining its corporate and small-business lending divisions together.

However, the bank has said 300 new jobs will be created within its new wholesale banking division and some of those laid off will be “considered” for the new positions.

Last month, Lloyds said it would axe 985 jobs over the next two years at its motor finance unit, after a detailed review established that the division was “no longer financially viable”.

Rob MacGregor, an officer for the Unite union, told the BBC: “The union will not accept a situation where the Lloyds makes weekly announcements of hundreds of job losses.”

In the meantime, ABN Amro has announced it will reduce its headcount by 10% - or 6,500 jobs.

The job losses are as a result of the Dutch bank’s integration with Fortis Bank Nederland.

The Dutch Government purchased Fortis Bank Nederland last autumn, while at the end of the year, it replaced Fortis as the dominant shareholder of ABN Amro.

The plan is to combine Fortis Bank Nederland and ABN Amro and sell the resulting entity back to the public.

ABN Amro was acquired in summer 2007 by a consortium of Royal Bank of Scotland (RBS), Fortis and Banco Santander.

The acquisition occurred on the eve of the credit crisis and has been blamed for the near collapse of RBS.

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