Tech & Work

Lloyds to cut 4,500 tech jobs

2,750 permanent and temporary roles to be lost in the UK

Lloyds Banking Group has announced that it will cut 2,750 permanent and temporary IT jobs in the UK by the end of 2012.

The company said the job cuts will be made up from 1,600 permanent and 1,150 temporary positions in the UK. In addition, 1,750 contractor roles will go at various offshore locations in India - bringing the total number of jobs lost to 4,500.

The cuts follow Lloyds TSB's acquisition of Halifax-Bank of Scotland (HBOS) in 2009, which left the company facing duplication of roles in its IT operations.

The job losses are part of a shake-up of Lloyds Banking Group's IT and operations division that will be made in 2012, and will put in place the organisational structure for the business once its three-year plan to integrate HBOS comes to an end. The integration is on track to be completed by the end of 2011.

According to a Lloyds spokesman, a "significant number" of the 2,900 temporary and contractor positions to be cut are roles that were initially created to deal with the HBOS integration - a number that the company always expected to ramp down over time.

The City of London - Lloyds Group is cutting 2,750 IT jobs in the UK by the end of 2012

Lloyds Group will cut 2,750 IT and operations jobs by the end of 2012
(Photo credit: Shutterstock)

Director of group operations at Lloyds Banking Group Mark Fisher said in a statement that the job cuts are "another major step" in bringing together the Lloyds TSB and HBOS businesses.

Lloyds said its policy is to use natural turnover to redeploy people wherever possible and that voluntary severance will be the preferred option, with compulsory redundancies a last resort. Of the 16,000 jobs cut by the company prior to the end of June, around half have resulted in redundancies.

Lloyds Banking Group's latest round of job cuts follows an announcement last year that 660 IT roles were to be axed at the company.

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