Lloyds Banking Group is cutting 1,250 jobs as it cuts costs and changes the way it sells insurance products in its branches.
The cutbacks – described as devastating news by union officials – are the latest to take place at the 24 per cent U.K. taxpayer-owned bank, according to The Guardian, which has already cut 45,000 roles since rescuing HBOS in 2008.
Lloyds boss António Horta-Osório warned in October that he would be cutting another 9,000 jobs and shutting 200 branches in an attempt to make the business more profitable. The latest cuts will hit staff involved in selling critical illness and income protection products across Great Britain.
“The bank’s announcement of its intention to cease the sale of standalone protection products through its bancassurance sales force is devastating news for all concerned and comes after many years of pruning and cutting staff numbers in an attempt to make this business area profitable,” the Accord union told The Guardian.
Some of the employees work out of Halifax, Lloyds and Bank of Scotland branches but the bank said they would also fall in its finance, risk and operations areas. It said the cuts were necessary because of falling customer demand for the products.
“As a result of significantly reduced customer demand,” the bank told The Guardian, “these products will no longer be available on a stand-alone basis. We will continue to offer protection as part of the mortgage sales process.”
According to the union, 427 of the roles will be lost at Halifax and 105 at Bank of Scotland.
