Lloyds share price: Lender to shed 1,250 insurance jobs

on Nov 14, 2014
Updated: Apr 9, 2020
Listen

iNVEZZ.com, Friday, November 14: Lloyds Banking Group Plc (LON:LLOY) is shedding 1,250 jobs to reflect changes in the way it sells insurance products in its branches, the Guardian has reported. The move is the first tranche of the planned 9,000 job cuts announced last month alongside the FTSE 100 lender’s third-quarter results.

Lloyds’ share price has been little changed at the opening bell in London this morning, having added 0.16 percent to 76.79p as of 08:04 GMT.
*h*Insurance job cuts*h*
The Guardian reported yesterday that the newest round of job cuts would impact employees involved in selling critical illness and income protection products across the UK. The newspaper quoted Lloyds as saying that some of the staff would also go from its finance, risk and operations areas.
“As a result of significantly reduced customer demand, these products will no longer be available on a stand-alone basis,” the lender explained, adding that it would “continue to offer protection as part of the mortgage sales process”.
In its November newsletter, the Accord union called Lloyds’ announcement “devastating news for all concerned” which followed “many years of pruning and cutting staff numbers in an attempt to make this business area profitable”. The union expects 427 of the roles to be lost at Halifax with a further 105 to be shed at Bank of Scotland.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

The union added that the affected employees would go through a 1:1 process to determine if they wished to remain with the group or leave on enhanced voluntary severance terms.
The latest round of job losses comes after last month Lloyds, which is still 25 percent owned by the UK government, confirmed plans to cut 9,000 jobs and close 150 branches over the next three years in an effort to slash costs and invest in digital technology. (Lloyds share price: Lender confirms job losses as profits jump) The lender expects to achieve run-rate savings of £1 billion per year by the end of 2017.

*h*Analysts on Lloyds*h*
As of November 11, the consensus forecast amongst 53 polled investment analysts covering Lloyds for the Financial Times has it that the company will outperform the market. The 25 analysts offering 12-month price targets for the FTSE 100 lender have a median target of 86.00p, with a high estimate of 115.00p and a low estimate of 55.00p. 
**As of 08:00 GMT, buy Lloyds shares at 76.88p.**
**As of 08:00 GMT, sell Lloyds shares at 76.82p.**

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

0/10
Learn more
Finance & Banking Stock Market