Lloyds Banking Group has announced plans to cut 1,600 jobs across its branch network as part of a major overhaul due to the increasing popularity of online banking. The group, which owns Halifax and Bank of Scotland, stated that the restructuring would also create 830 new roles, resulting in a net reduction of 769 jobs. Lloyds stated that the changes were necessary given the rapid shift in the way customers bank, with over 21 million now banking online or via mobile apps. The new roles will be in the bank’s relationship growth team, which will enable staff to meet with customers through video meetings or over the phone, reducing the need for face-to-face appointments. The bank did not disclose how many of the cuts would be made through voluntary redundancies.
The Accord Union, which represents over 22,000 staff at Lloyds, commented that the changes would have a significant impact on the branch network and its members. The union stated that the bank’s aim was to encourage all customers to use digital banking first, although it acknowledged that not all customers had the necessary tools or desire to switch to online banking. A number of high street banks have announced similar job cuts and branch closures in response to the shift in customer preferences towards online banking, with Barclays, NatWest, Virgin Money, Ulster Bank, RBS, and Metro Bank all closing branches in 2023. Lloyds has been making changes to its business operations since February 2022, and it plans to close a further 45 bank branches. However, the bank has stated that affected staff will be offered roles at other branches or within different areas of the business. The closures will bring the total number of Lloyds group branches down to 515 Lloyds Bank sites, 413 Halifax branches, and 133 Bank of Scotland branches.
