Lloyds job cuts

Lloyds jobs losses

Lloyds jobs losses since its merger with HBOS will reach 4,500 following the planned closure of 160 Cheltenham & Gloucester branches, with analysts predicting another 20,000 to come.

Closing the C&G mortgage and savings business will result in the loss of 1,500 jobs, the bank is expected to say later on Tuesday, adding to the 3,000 positions already cut in recent weeks.

Although the brand is expected to be kept in some form, possibly as an internet bank, the branch closures will draw a curtain on C&G's 159-year history.

Lloyds bought C&G, which was then a building society, in 1995. Its departure from the High Street follows other familiar former building society names, such as Abbey, Alliance & Leicester and Bradford & Bingley, all of which are to be rebranded Santander by their Spanish owner.

Despite the branch closures, Lloyds still expects to operate a multi-branded strategy as outlined when it bought HBOS in September last year.

At the time, Lloyds chairman Sir Victor Blank praised HBOS' model of focusing on a variety of brands. Lloyds has said it will centre its strategy on Halifax, Bank of Scotland and Lloyds TSB. It has about 3,000 branches in total.

The job losses angered Unite, the union, which has accused Lloyds of subjecting staff to "death by a thousands cuts" and has demanded the bank come clean about the extent of its cost-cutting programme.

The bank has instead chosen to announce the cuts on a division-by-division basis in what it claims is the best way of managing the process with staff.

Derek Simpson, Unite joint general secretary, described the latest cuts as "nothing short of disgraceful", adding: "This move will rip the heart out of hundreds of local communities up and down the country. Hundreds of staff who have worked hard for years to make the C&G brand a success will view this news as a kick in the teeth. UK taxpayers have not poured billions of pounds into this organisation just to see it sack thousands of hard-working people.

"This is truly a dark day for the financial services sector in this country."

A spokesman for Lloyds said; "If and when we have an announcement to make, first and foremost we brief our colleagues. We will then speak to our external stakeholders. Cheltenham & Gloucester is an important and valuable brand for our company and it will remain so."

The news was welcomed in the market, where Lloyds shares rose 1.9 to 63p. Yesterday, it successfully completed a £4bn placing that enabled the bank to repay £2.3bn of the £17bn taken from the taxpayer to date.