Equities By Region Finance and Banking UK

Lloyds share price: Lender’s digital revamp to affect thousands of jobs

Lloyds Banking Group (LON:LLOY) has confirmed that it is cutting 6,240 jobs and creating 8,240 new ones as it overhauls its digital services, the BBC has reported. The news comes after the bailed-out lender recently updated investors on its third-quarter performance, noting that it had made ‘a strong start’ to its 2018 to 2020 strategic plan.

Lloyds’ share price has fallen into the red in London in today’s trading, having given up 0.67 percent to 58.18p as of 14:42 GMT. The decline is largely in line with losses in the broader UK market, with the benchmark FTSE 100 index currently standing 0.69 percent lower at 7,055.00 points.

Lloyds confirms reorganisation

The BBC reported today that Lloyds had confirmed that it was cutting 6,240 jobs and creating 8,240 new ones, with 75 percent of the new roles to be filled by existing staff. Some specialist roles such as data scientists, however, will come from outside.

“This forms part of the £3-billion commitment the group has made to invest heavily in its technology and people over the course of its three-year strategic plan,” the lender pointed out, as quoted by the newswire. Branches will be unaffected but its site in Gillingham will close.

Unite warns of plummeting morale

Trade union Unite said that it had called on Lloyds to guarantee no compulsory redundancies while warning of plummeting staff morale.

“As the profits stack up for Lloyds, so does the uncertainty for loyal staff who work hard to serve customers,” the union’s national officer Rob MacGregor commented. “This latest announcement will undoubtedly hit the morale of staff who have had to endure round after round of job cuts, branch closures and constant upheaval.”

As of 15:01 GMT, Tuesday, 06 November, Lloyds Banking Group share price is 57.83p.

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