Lloyds Resumes Hundreds of Job Cuts Halted at Covid’s Peak

(Bloomberg) -- Lloyds Banking Group Plc became another British bank to restart pre-pandemic job-cutting plans as the economic outlook deteriorates.

The British bank said Wednesday that it’s cutting more than 800 roles and hiring for more than 200 others, leading to a net reduction of 639 jobs. The departures will mostly be at the bank’s wealth and insurance unit, where Lloyds has started a joint venture with Schroders Personal Wealth.

Lloyds joins lenders like HSBC Holdings Plc in resuming job cuts amid the prospect of soaring bad loans as post-coronavirus state support programs wind down. The cuts underline the grim outlook for U.K. banks, which like their European peers are struggling with low interest rates and fierce competition. Britain is facing its worst recession since the financial crisis amid jitters that post-Brexit trade talks might fail.

The changes, which also include cuts at the retail division, reflect the bank’s plans to simplify its businesses, a spokeswoman at Lloyds said.

No departures will come before November, and some staff in the roles set for elimination will be deployed elsewhere in the bank. The Unite union said the cuts will hit back-office staff as well as department heads.

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