Bank of Scotland owner Lloyds to cut 1,600 jobs in branch network overhaul

The restructuring initiative, affecting Lloyds, Halifax, and Bank of Scotland, aims to adapt to changing customer preferences and enhance overall efficiency.

The shift towards digital banking has been significant, with over 21 million customers opting for online or mobile app services, making traditional branches less utilised. Lloyds emphasised that 8% of customers exclusively used branches for managing their finances. In response, the banking group is set to create 830 roles within its relationship growth team, focusing on personalized customer interactions through video meetings or phone calls, the BBC reports.

The restructuring is expected to result in a net reduction of 769 jobs, as the bank aims to streamline its management structures. However, the cuts exclude junior staff, and voluntary redundancy options will be offered.

The move aligns with broader industry trends, as various High Street banks, including Barclays, NatWest, Virgin Money, and RBS, have announced closures and job cuts in response to the digital shift. Metro Bank and Barclays, in particular, have undertaken significant cost-cutting measures involving workforce reductions.

Lloyds has been implementing changes since February 2022, with plans to close a total of 276 branches, including 22 Halifax branches, 19 Lloyds branches, and four Bank of Scotland branches. The closures will be phased, with most occurring in March and April, and the remainder in August and November.