Lloyds Banking Group is preparing to restructure their business in order to focus more on digital services.
A person with knowledge of the situation says that the bank will be reviewing thousands of middle management positions. This includes analyst and product manager jobs. Lloyds has 60,000 employees and said that it is “evolving” to better meet the needs of its customers.
In recent years, mainstream UK lenders have cut back on their high street presence. One in eight branches that were open at the beginning of 2023 are expected to close by the end of this year. Which? consumer group.
Guardian first reported the latest threat to Lloyds’ jobs.
Under Charlie Nunn, the chief executive of Lloyds, a four-year investment plan worth £4bn was unveiled last year to diversify income from mortgages and into business lines that are less dependent on interest rate fluctuations, such as wealth management and insurance. Nunn’s strategy included digitizing the bank’s operations to reduce costs and increase returns.
Lloyds is restructuring to focus on digitalization, according to an insider.As many as 120 new jobs are expected as a result.
Lloyds stated that “we’re delivering on one of the biggest transformations in UK Financial Services, which includes reviewing our business and tech teams working together effectively to deliver our strategy and achieve long-term growth.”
Although Lloyds has taken steps to improve its digital services the bank pushed earlier this year for employees to spend a greater amount of time in the office. In an annual survey of staff engagement, nearly a third reported dissatisfaction. According to an internal presentation, the policy of flexibility of the bank was cited as the primary cause of the dissatisfaction.
Banks have been forced to shut down their physical branches and their digital infrastructure is also being scrutinized. HSBC’s mobile and internet banking system was down on Friday, one of the busiest shopping days in the UK.
Banks in Europe and the US are cutting jobs to save money, even though profits have increased due to rising interest rates.
Citigroup announced this week the first major round of job cuts in its extensive restructuring.