Lloyds to Eliminate 305 Jobs Across Its U.K. Branch Network

(Bloomberg) -- Lloyds Banking Group Plc is to eliminate 305 jobs primarily across its branch network, as Britain’s largest mortgage lender steps up plans to control costs.

Central functions at the London-based bank will also be affected by the cuts, Lloyds said in a statement on Tuesday. The bank is also shutting 49 branches, according to people familiar with the plan, who declined to be identified as the details are private.

The company said in its statement that it would seek to redeploy people wherever possible.

Chief Executive Officer Antonio Horta-Osorio is targeting a ratio of costs in relation to income in the low 40 percent range at the end of 2020, which would make it one of the most efficient European banks. In February, the bank also pledged to spend more than 3 billion pounds ($4.2 billion) on information technology as more customers access their accounts online. The bank said Tuesday that 925 “new roles” would be created as part of the plans.

Investing in a digital transformation, closing branches and reducing the workforce were prioritized by the lender four years ago when it announced 9,000 job cuts and a 1 billion-pound tech investment. In 2016, the bank said a further 3,000 jobs would go, and in February revealed plans to eliminate around 1,000 jobs.

The bank had 70,255 staff as of the end of June, down from about 99,000 employees in 2011 in the year Horta-Osorio became CEO.

To contact the reporter on this story: Stefania Spezzati in London at sspezzati@bloomberg.net.

To contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Paul Armstrong

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