Bloomberg News

Lloyds, RBS to Eliminate More Than 2,000 U.K. Jobs to Cut Costs

March 13, 2012

Lloyds Banking Group Plc (LLOY) and Royal Bank of Scotland Group Plc, Britain’s largest state-supported banks, will eliminate 2,064 jobs in the U.K. to control costs.

Lloyds will cut 1,600 jobs in services including information technology, cleaning and security, the London-based bank said today in an e-mailed statement. The reductions are part of 15,000 job losses Chief Executive Officer Antonio Horta- Osorio announced in June. Some positions, such as security, will be transferred to suppliers, the bank said.

British banks, including Lloyds, RBS and Barclays Plc, are reviewing their operations and trimming profitability targets as regulators enforce higher capital requirements to prevent a repeat of the 2008 financial crisis.

“Once more these banks are attacking some of their lowest- paid staff to achieve cost savings,” David Fleming, national officer for the Unite labor union, which represents employees at both banks, said in an e-mail. “Only last week we saw massive bonuses being announced for the top bankers in these companies, yet now they have the audacity to claim efficiency savings are essential.”

Lloyds will transfer 300 of the jobs to India. The bank has cut 5,400 of the 15,000 positions so far, Lloyds said. RBS will cut 464 U.K. administrative jobs, the Edinburgh-based bank said in a separate statement.

“We will do all we can to support our people, offer redeployment opportunities wherever possible and keep compulsory redundancies to an absolute minimum.” RBS said.

RBS will create 150 new jobs at other sites, it said. The cuts are in addition to about 7,000 announced by the bank since August.

RBS said last week it paid 19.8 million pounds ($31 million) to its top eight employees, with the amounts ranging from 4.7 million pounds to 978,000 pounds, according to its annual report. Lloyds awarded 16.2 million pounds, with the highest-paid individual getting 1.2 million pounds.

-- Editors: Jon Menon, Steve Bailey

To contact the reporter on this story: Howard Mustoe in London at hmustoe@bloomberg.net.

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus