Lloyds share price: Group set to axe further 520 jobs

on Nov 10, 2016
Updated: Oct 21, 2019

Lloyds Banking Group (LON:LLOY) is poised to cut a further 520 jobs as part of its three-year restructuring plan announced in October 2014, Reuters has reported. The move comes with the lender, still part-owned by the UK government, looking to cut costs and improve shareholder returns.

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Lloyds’ share price has soared this morning, having added 2.67 percent to 59.04p as of 08:34 GMT. The stock is outperforming a broader market rally, which has seen the benchmark FTSE 100 index add 1.05 percent to 6,984.27 points. The group’s shares, however, remain down by about a fifth this year, and continue to trade well below the taxpayer’s break-even price of 73.6p.
Reuters reported yesterday that the latest layoffs at Lloyds, which will affect workers in divisions including retail, commercial banking, insurance, and consumer finance, follow on from about 5,500 net job cuts the bank has already made this year. A spokeswoman for Lloyds told the newswire that all affected staff had been briefed by managers and the group had also notified workers’ union Unite.

“It is alarming that Lloyds are continuing this programme of job cuts and branch closures,” the union’s national officer Rob MacGregor meanwhile told the Guardian. “Unite have expressed to the bank that these ongoing cuts hurts our members and inevitably impacts customers.”
The newspaper also quoted the blue-chip lender as commenting that the decision to make cuts was difficult but they were needed because of ‘changing customer needs’.

Lloyds, bailed out at the UK government during the financial crisis, has been looking to trim costs as it aims to boost performance and improve shareholder returns. Last month, the FTSE 100 lender reported a 15 percent drop in third-quarter profit. The government meanwhile recently reduced its stake in the blue-chip group to just under nine percent through a share sale to institutional investors, while plans for a retail offer have been scrapped amid market volatility pressuring Lloyds’ share price.
As of 08:52 GMT, Thursday, 10 November, Lloyds Banking Group share price is 59.00p.


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