Lloyds Banking Group is set to reduce its workforce by approximately 1,600 jobs across its branch network as part of a significant overhaul in response to the increasing trend of online banking.

The restructuring, affecting Lloyds, Halifax, and Bank of Scotland, aims to create a more streamlined service in line with changing customer preferences.

However, the bank also highlighted that the reorganization would result in the creation of 830 roles, leading to a net reduction of 769 jobs. Lloyds emphasized the importance of adapting to the evolving banking landscape, where over 21 million customers now choose online or mobile banking options. Only 8% of customers exclusively use branches for managing their finances.

The 830 new positions will be allocated to Lloyds' relationship growth team, focusing on enhanced customer interactions through video meetings or phone conversations in branches. Lloyds stated that this approach would reduce the need for customers to wait for appointments.

The bank clarified that the job cuts would not affect junior staff, and voluntary redundancy options would be extended to some employees. Accord Union, representing over 22,000 staff at Lloyds Banking Group and TSB, expressed concerns about the impact on the branch network and its members, noting the bank's push for digital-first services.

While acknowledging that not all customers are equipped or willing to transition to digital banking, the union emphasized that the majority of redundancies are expected to result from changes to management structures, with a preference for achieving reductions through voluntary redundancy.

This move by Lloyds follows a broader trend in the banking industry, with several institutions announcing job cuts and branch closures in response to the increasing reliance on online banking. Lloyds had previously revealed plans to close 45 bank branches, with the majority shuttering in March and April, and the remainder scheduled for closure in August and November. Affected staff will be offered alternative roles within the company, with no compulsory redundancies planned. The latest round of closures will bring the total number of Lloyds group branch closures to 276, leaving 515 Lloyds Bank sites, 413 Halifax branches, and 133 Bank of Scotland branches operational. Photo by Doyle of London, Wikimedia commons.