Lloyds Banking Group (LON:LLOY) is poised to slash around 1,000 jobs across six businesses, Bloomberg has revealed. The news comes as the group’s chief executive Antonio Horta-Osorio prepares to unveil a new strategic plan for the bailed-out lender alongside the company’s full-year results on February 21.
Lloyds’ share price lost ground in the previous session, giving up 0.93 percent to close at 68.11p. The stock, however, marginally outperformed the broader market selloff, with the FTSE 100 index ending the session 1.46 percent in the red at 7,334.98 points, pressured by the ongoing global equities selloff.
Job cuts on the cards
A Lloyds spokeswoman told Bloomberg News in an email yesterday that the lender had informed some staff last month, with the majority of the cutbacks to take place across commercial banking, its chief information office, risk, community banking, insurance and wealth. The bank also eventually plans to add back 465 roles across its businesses.
“Where it is necessary for employees to leave the company, we will look to achieve this by offering voluntary redundancy,” the spokeswoman explained to the newswire, adding that compulsory redundancies would ‘always be a last resort’.
The news comes as Lloyds, which returned to full private ownership last year, prepares to update investors on its strategy going forward and Bloomberg reports that analysts expect the plan to feature more cost reductions and investment in technology as customers move online.
“When you are operating in an environment where there is little to no top-line growth and impairments are already at an all-time low, the only lever you can really pull to affect profit growth is to cut costs with staff being the biggest part of this,” Gary Greenwood, an analyst at Shore Capital, told the newswire in an email.