TTstudio - Fotolia

Lloyds Banking Group wields axe to IT staff

Lloyds Banking Group announces it is cutting IT jobs as part of a cost-cutting plan, which also sees 23 branches close

Lloyds Banking Group has reduced its workforce by a further 640 as part of its cost-cutting plan, with IT and back office roles cut and the closure of 23 branches.

As banks increasingly move to IT-enabled digital channels, they appear to need less IT staff.

The cuts are part of the bank’s cost-cutting plan announced in 2014, when it said it will cut 9,000 jobs and close around 150 branches. Part of this plan includes the move to digital channels.

Lloyds said the net reduction of jobs will be 525 jobs, with new ones created. 

Rob MacGregor, national officer at the union Unite, said this will “bring disappointment as staff feel they have already faced two years of endless workforce cuts”.

On 22 June 2016, the Royal Bank of Scotland announced it is cutting 900 IT and back office jobs as part of a reorganisation that involves offshoring roles.

There is also uncertainty around UK banking jobs following the results of the European Union (EU) membership referendum, where the majority of Britons voted to leave the EU.

This follows reports that HSBC and US bank JP Morgan could move thousands of jobs out of the UK.

David Banister, analyst at Ovum, said there is a worry that some big overseas banks will have to move parts of their operation to Europe for compliance reasons.

IT workers in the UK banking sector are hardened to the threat of job losses, with thousands cut since the financial crisis of 2008, and Brexit adding another layer of threat to staff.

Read more on IT for financial services