Lloyds Banking Group will be laying off around 9,000 people over the next three years. These 9,000 jobs represent about 10% of its total workforce.
An official announcement is expected to be made next week. The job cuts are part of chief executive Antonio Horta-Osorio’s strategic review of the business.
In addition to job cuts, the plan also includes closing some of the bank’s branches.
It is thought that this move is because of the increasing shift of customers switching from physical branches to online banking.
These job cuts would add to the number of layoffs at the bank since the height of its bailout in 2009. Since the financial crisis it has eliminated 30,000 jobs and in 2011 it announced 15,000 job cuts are part of its three year plan.
The UK government has reduced its stake in the bank from 39% down to 25% through two share sales since September 2013.
Lloyds Banking Group operates over 2,000 branches across the UK through its Lloyds Bank, Bank of Scotland, and Halifax brands.
The company was committed to maintaining branches as a condition of acquiring HBOS in 2009. However, the commitment ends at the end of 2014. It
Lloyds already sold off over 630 branches when it floated TSB earlier in 2014.
With internet banking on the rise, it is only natural for the bank to reduce its branch numbers, say analysts.
Digital banking transactions are now worth around £1 billion a day. There are more than 40 million online transactions being made on a weekly basis, according to the banking trade body the BBA.