Lloyds Bank is axing another 1,070 employees just weeks after announcing a £1billion profit for the third quarter of the year.
The lender, which had already cut 865 jobs in September, revealed another chunk of staff would be asked to clear their desks in the coming months – taking the total since the pandemic began to almost 2,000.
Trade union Unite branded the cuts a ‘shameful decision’, coming less than a month after results for the three months to September, which breezed past City expectations.
The cuts come as chief executive Antonio Horta-Osorio prepares to leave. The Portuguese banker is widely credited with turning around the ‘basket case’ lender after the financial crisis.
Rob MacGregor, Unite national officer, said: ‘Lloyds has produced better than expected third-quarter results, posting in excess of £1billion of pre-tax profit, a direct result of the hard work and versatility of its workforce. This cost-cutting strategy will not serve the bank or its customers.
‘It is impossible to reconcile the job losses with such an improved balance sheet.
‘Unite is calling on Lloyds to do the right thing and put on hold its restructure plans. The threat caused by the pandemic is now unquestionable.
‘The bank must now hit the pause button on its job loss and redundancy programme.’
Lloyds said it would be creating around 340 new roles, meaning that in total it would have around 730 fewer employees after the latest cuts.
A spokesman said: ‘These changes reflect our plans to continue to meet our customers’ changing needs and make parts of our business simpler.
‘The majority of colleagues briefed today will not leave until January at the earliest. We will help colleagues who are affected find new roles and redeployment opportunities wherever possible and everyone will be given access to a package of training and support designed to help them secure their next position.’
The cuts come as chief executive Antonio Horta-Osorio prepares to leave. The Portuguese banker is widely credited with turning around the ‘basket case’ lender after the financial crisis.
He returned it to profit and it is back in private ownership after its £21billion state bailout.
When he announced his departure over the summer, analysts speculated that he would aim for a ‘grandstand’ finish.
He will be looking to prove cost-cutting is going to plan, and hopes to resume dividend payouts.
Lloyds had been hit by the pandemic but bounced back in the third quarter after a housing market boom pushed up the demand for mortgages.
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