Assurance for Scots workers as Lloyds to cut nearly 1,000 jobs

Lloyds Banking Group (LBG) is to axe almost 1,000 jobs, but insisted yesterday “very few” positions will go in Scotland.

A spokesman for the group – formed in January following the acquisition of Halifax Bank of Scotland by Lloyds TSB – said the job-cutting would have little impact north of the border.

LBG’s workforce in Scotland was instead likely to increase because of redeployment from other areas, he said.

The bank said around 200 jobs will be affected at Speke on Merseyside and 340 at Chester, while the rest will go at the group’s UK-wide sales force.

Yesterday’s announcement affects 985 full and part-time jobs in motor finance processing over the next two years.

LBG said it was committed to redeploying as many workers as possible. It added: “The group’s preference is to use natural turnover and to redeploy people wherever possible so it retains their expertise and knowledge.”

About 240 staff at Speke have already been transferred to other jobs, said the bank, adding: “Where it is necessary for colleagues to leave the company, it will look to achieve this by making less use of contractors and voluntary severance. Compulsory redundancies will be a last resort.

“A range of measures have been put in place to support colleagues through this uncertain time.”

David Oldfield, managing director of asset finance within Lloyds Banking Group’s wholesale division, said: “The decision follows a detailed review carried out last year by Bank of Scotland.

“We are committed to working through these changes with our colleagues carefully and sensitively.”

LBG said it would still be the UK’s number one independent provider of point-of-sale motor finance and remained committed to these markets.

Ged Nichols, general secretary of Accord, which represents some LBG staff, said: “The bank should not be tempted to rush into unnecessary job cuts in an attempt to achieve short-term cost savings.

“Accord is in ongoing talks with the bank and will be contacting all the other relevant stakeholders to discuss possible solutions.”