Lloyds to slash another 510 jobs

Wednesday, June 3, 2009 at 5:18 AM Posted by Beijing News


Lloyds Banking Group said on Wednesday it will cut another 510 jobs in a bid to turn around its struggling fortunes.

LBG said in a statement that it would close a customer services facility in Chatham in Kent with the loss of 190 jobs before the end of the year.

Other positions will be shed in sales, mortgage and branch network support services. LBG has now cut close to 3,000 jobs since its creation in January.

"The changes announced today will, in total, result in a reduction of approximately 510 permanent roles across the group," LBG said in a statement.

"Lloyds Banking Group is committed to working through these changes with colleagues carefully and sensitively. The unions were consulted before this announcement and will continue to be consulted throughout this process."

The group said it would seek to redeploy staff where possible, but warned that compulsory redundancies could be used as a last resort.

"A range of measures have been put in place to support colleagues through this uncertain time," it added.

LBG was created in January when Lloyds TSB bought rival lender HBOS, which faced collapse because it was struggling to raise funds owing to the credit crunch.

Lloyds TSB management has been sharply criticised for the purchase of HBOS, which was saddled with billions of pounds in toxic assets that have had to be covered by government money.

The government owns around 43 percent of LBG and could end up owning as much as 65 percent of the group if other shareholders snub a new share issue worth 4.0 billion pounds.

The rights issue closes on Friday. LBG wants to use the proceeds to redeem preference shares held by the state.





A Siberian tiger cub is seen with its mother at a zoo in China. REUTERS/China Daily

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