Lloyds Banking Group to cut 4,500 jobs

Lloyds Banking Group has announced plans to cut 4,500 jobs with its IT and operations department.

The bank, which is still 41% owned by the government after a £20 billion rescue in 2008, is cutting 1,600 roles held by permanent members of staff and a further 1,150 working on temporary contracts. The banks is also cutting another 1,750 offshore contractor roles.

The cuts are set to be completed by the end of next year following the completion of an integration period between Lloyds and HBOS. Lloyds says it consulted its union partners, Accord, LTU and Unite prior to the announcement. (article continues below)

Lloyds says its policy remains to use natural turnover and redeploy people were possible to ensure their expertise remains within the business. It says compulsory redundancies are a last resort.