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Wednesday 18th of November 2009
August 25, 2009    

Lloyds brings job losses total to 7,500 this year

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by Kay Murchie

Banking giant Lloyds Banking Group has today announced it is shedding a further 200 jobs, bringing its total to 7,500 this year.

The bank, which is 43% state-owned, said the latest job losses will affect the bank’s general insurance arm in Newport, South Wales and West Yorkshire.

The latest round of job cuts will take place by the end of January 2010, said the bank.

The announcement comes just a week after the bank said it was reviewing its decision to close down its Cheltenham & Gloucester (C&G) subsidiary.

In June, the mega-bank said it was closing all of its 160 UK C&G branches with the loss of hundreds of jobs but the decision may now be reversed.

Commenting on today’s announcement, Rob MacGregor of the Unite union, said: “We have no confidence in this bank’s confused strategy.”

In response, Philip Loney, managing director of Lloyds General Insurance unit said: “We recognise that this is difficult news for our affected colleagues.”

“We are committed to working through these changes with our colleagues carefully and sensitively and will seek to use natural turnover and redeployment wherever possible,” added Mr Loney.

Since its merger with HBOS last autumn, Lloyds has axed thousands of jobs due to overlap within the mega-bank.

In related news, it has been reported that Lloyds is in talks to offload its Clerical Medical Unit to Clive Cowdery’s Resolution for up to £4 billion.

Lloyds acquired Clerical Medical when it bought HBOS last autumn.

According to a source, the talks between the banking giant and Resolution are at an early stage, however the bank refused to comment.

The disposal of Clerical Medical would allow Lloyds to return some of the taxpayer funds injected late last year, or help it pay £1 billion to opt out of the Government’s Asset Protection Scheme, which insurers against losses arising from toxic assets.

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