Lloyds TSB is cutting more IT jobs as it reduces the number of staff in its operations division.
The number of people working in operations, of which a large part is made up of IT staff, will be reduced by about 2,800 by the end of 2010.
The cuts come as part of Lloyds TSB's merger with HBOS and are part of a planned reduction of 5,000 positions by the end of 2010.
In May, union Unite accused the bank of having a strategy amounting to "death by a thousand cuts."
The bank said it will limit the impact on full-time UK workers by cutting 550 offshore workers as well as contractors.
Mark Fisher, group integration director at Lloyds Banking Group, said, "We have mitigated the impact on positions through redeployment and the release of contractors and temporary staff."
Fisher Joined Lloyds TSB from RBS to oversee the coming together of Lloyds TSB and HBOS.
Through cost-cutting measures the bank originally targeted £1bn savings through removing duplication in the two organisations. It now expects savings of £1.5bn.