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Lloyds digital banking shake-up to affect thousands of jobs

By Simon Penfold | Business | Published:

Lloyds Banking Group, which has a major base in Wolverhampton, has confirmed it is to axe 6,240 jobs as part of a digital overhaul.

1,800 people work at the Lloyds Banking Group building at Pendeford Business Park, Wolverhampton. It is not know if they are affected by the latest shake-up of the business.

The high-street lender said that as part of the shake up, it will also create 8,240 new roles, resulting in a net creation of 2,000 jobs.

Lloyds said that 75 per cent of the new roles will be filled by existing staff, but some specialist roles such as data scientists and software engineers will be recruited externally.

The cuts will fall on back office roles and not bank branches. Under the plan, Lloyds' Gillingham site is to close. Union leaders have warned that workers could effectively be forced out of working for Lloyds because they would be unable to move or travel to where the new roles are located.

It is not known if the move affects the 1,800 people who work at Lloyds' offices on Pendeford Business Park in Wolverhampton, classed as one of the banks main offices and a customer contact centre. Hundreds more work at the bank's offices in Colmore Row, Birmingham.

A Lloyds spokesman said: "Lloyds Banking Group has today announced that it will create an additional circa 2,000 roles, as it strengthens its capability to offer customers new leading-edge digital banking products and services.

"The group is investing to further digitise the bank and will refresh some existing roles and create new roles within its structure, while also providing comprehensive retraining for colleagues to help them build their capabilities to meet the demands of these future roles."

The move is part of a £3 billion commitment from Lloyds to invest heavily in technology as part of its three-year strategic plan under chief executive Antonio Horta-Osorio.

Lloyds has now announced nearly 10,000 job cuts in the 20 months since the Government sold off its stake in the lender to take it fully private.

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The bank's efficiency and modernisation drive has continued apace since it was taken off the public books in May 2017, with Lloyds saying a business overhaul and reduction of its branch network is essential to ensure it stays relevant amid a digital shift.

At its peak, Lloyds was 43 per cent owned by the state.

The bank raked in £1.82 billion of profit in the three months to September 30, leaving unions to question the job cuts.

Unite national officer Rob MacGregor said: "As the profits stack up for Lloyds, so does the uncertainty for loyal staff who work hard to serve customers. This latest announcement will undoubtedly hit the morale of staff who have had to endure round after round of job cuts, branch closures and constant upheaval.

"The news of additional jobs will prove to be a bitter pill for workers at Lloyds' Gillingham site closure. These hard-working staff face limited opportunities for redeployment, while other workers around the country could effectively be forced out of a job because they are unable to travel or move to where the new roles are located.

"Unite will be pressing Lloyds to guarantee no compulsory redundancies and ensure that staff who move into new roles are given the support and skills that enable them to continue delivering the best possible customer service."

Simon Penfold

By Simon Penfold
Business Editor - @SPenfold_star

Business Editor based at the Express & Star's head office in Wolverhampton, looking for stories big & small.

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