Taxpayer-Backed Lloyds To Axe 1,000 Jobs

Lloyds Banking Group is to axe almost 1,000 jobs and close four of its offices, the partially state-owned bank has announced.

Lloyds will shut its back office sites in Dudley, Romford, Newcastle-upon-Tyne and Scunthorpe, with the loss of 990 jobs.

The bank, which was bailed out during the 2008 financial crisis and is now 40% owned by the taxpayer, said the cuts were part of restructuring plans already announced last year.

The latest job losses will fall on the bank's group operations, executive functions, wholesale and insurance divisions.

Lloyds, which employs just over 100,000 people, said it would seek to re-deploy staff where possible and compulsory redundancies would be a last resort.

Some 31,000 jobs have gone at the bank since it took over Halifax Bank of Scotland three years ago, incurring major losses.

Unions have reacted angrily to the announcement, saying it is a "devastating" blow to workers in areas that could not afford any job losses.

Accord general-secretary Ged Nichols said: "Whilst Accord has informed LBG that it must do everything possible to avoid compulsory redundancies and work with us to provide support and guidance to those affected, the truth is that even those who volunteer to go will find it difficult to find alternative employment in these difficult economic times."

David Fleming, national officer of Unite, added: "Unite will be holding discussions with the bank, with the objective of minimising the need for job cuts following this further restructuring. The organisation must do more to offer redeployment opportunities to their workers."

Last June, Lloyds chief executive Antonio Horta-Osorio announced plans to cut 15,000 jobs and halve the bank's international presence as part of a restructuring designed to save £1.5bn a year by 2014.

Mr Horta-Osorio waived his bonus for 2011 following the bank's poor performance and his two month's of medical leave.