Lloyds Banking Group (LBG) has decided to make 865 roles redundant to slash costs as surge in bad loans amid the Covid-19 pandemic affects its income.

Most of the job cuts will take place in the insurance and wealth divisions, and will not affect any bank branches.

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Lloyds recently partnered with Schroders to create a new joint venture (JV), which removed the need for these insurance and wealth division positions.

The job cuts will begin from November. The lender will create 226 jobs in other business areas to partially compensate for these layoffs.

In May, the bank planned to postpone its retrenchment plans until October 2020. However, Lloyds has been grappling with long-term cost pressures since recent weeks.

A spokeswoman for Lloyds said: “These changes primarily reflect our existing plans to simplify parts of our businesses, which were in place prior to Covid-19.

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“Any colleague impacted by today’s announcement will not leave the Group until November at the earliest.”

Trade union Unite comments

Trade union Unite national officer Rob MacGregor said: “The pandemic has demonstrated the amazing resilience and flexibility of this workforce.

“The employer should not focus solely on cutting jobs and costs but, instead, the bank should invest in a workforce that has only shown loyalty, dedication and hard work through the good times and the bad.”

Recent job cuts

Last month, Co-op Bank decided to slash 350 jobs and shutter 18 branches, due to Covid-19.

Wells Fargo also resumed layoffs that were put on hold due to the pandemic.

NatWest decided to slash nearly 500 retail banking jobs to cut costs in the wake of the pandemic.

British lender TSB decided to phase out cashier roles by next year, which could put hundreds of jobs at risk.