Lloyds Bank to close over 150 branches and axe 9,000 jobs

Over the next three years, Lloyds Bank will tighten its belt - to the tune of letting 9,000 staff members and over 150 stores go.

13:36 28 October 2014

Lloyds Bank will cut 9,000 jobs and close over 150 branches (some sources state as many as 200) due to the increased number of customers using online banking services instead of face-to-face interactions.

Rob MacGregor, national officer of the Unite union, said: "These are deeply unsettling times for Lloyds staff, who, after days of speculation and leaks, face yet another round of job cuts and a future of uncertainty.

"Job cuts of approximately 10% could have unknown consequences on customer service and will put even more pressure on staff who have helped get the bank back on the right track."

The taxpayer owns 25% of Lloyds - the longstanding banking group which is now said to be "digitising" its business model. Lloyds also owns the Halifax and Bank of Scotland brands.

Chief executive Antonio Horta-Osorio said: "Over the last three years the successful delivery of our strategy has ensured that we have become a safe, highly efficient, UK-focused retail and commercial bank.

"The next phase of our strategy will use these strong foundations as a basis for meeting the rapidly-changing needs of our customers, and sets out how we will grow the business in a way that will deliver increasing and sustainable returns for our shareholders."

The Lloyds Banking Group was hit hard by the mis-selling of PPI scandal. It has cost Lloyds £11.3bn so far, including £2.5bn in administration costs, according to the BBC. The group also has £900m set aside for future payouts. Despite this, Lloyds reported pre-tax profits of £1.61bn for the nine months leading to the end of this September.