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Bank Announces 4,960 More Job Losses For 2010
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Date: 10th Nov 2009
Three of the Bank’s five Divisions have announced plans for further job reductions during 2010 as the Bank continues its drive to slash costs by £1.5 billion a year by the end of 2011.
Between them, the three Divisions - Insurance, Group Operations and Retail (Mortgages) - are to make over 4,960 jobs redundant next year. This raises to over 15,000 the overall job reductions announced since the merger of LTSB and HBOS.
Retail Division’s announcement relates purely to Mortgages - and is separate from the announcement last week that the Bank is to dispose of a significant part of its Mortgages business - and LTU expects the Division to eventually confirm thousands more job reductions next year from its other business units.
Key features of the Bank’s plans for 2010 are:
● Insurance: 1,188 Jobs Redundant
The combined Scottish Widows and Clerical Medical operations plan to remove 950 roles, whilst General Insurance plans to cut 238 jobs. The largest job reductions will come from Customer Service and IT areas.
Despite planning such large job cuts amongst its UK-based staff, the Division has no plans to reduce the 500 Customer Service and 70 Testing jobs it has offshored to India.
● Group Operations: 2,814 Jobs Redundant
The Group Operations Division plans to cut a further 2,814 jobs during 2010, increasing the overall Divisional losses announced since the beginning of this year to 5,500.
Many of these job reductions will be achieved through the Division concentrating its activities in fewer sites - it will pull out of 10 of the 20 sites affected.
Despite accounting for the biggest proportion of jobs in India, the Division is refusing to return work to the UK to protect the jobs of its own, existing staff.
● Retail (Mortgages): 950 Jobs Redundant
Retail Division has announced that 950 jobs will be made redundant during 2010, though redeployment will result in only 300 staff leaving the Bank.
Like Group Operations, the Mortgages business unit will be consolidating its activities in fewer sites, pulling out of some sites altogether.
Many affected staff will therefore face the prospect of having to transfer between sites, move into new roles or be made redundant.
Like the other Divisions, Retail is refusing to return jobs from India.
LTU anticipates further announcements over the coming months concerning significant additional job reductions planned for 2010 across other parts of the Retail Division.
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