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30 June 2011
Last updated at 03:48 ET
Lloyds has said it will cut another 15,000 jobs, 14% of its workforce.
The move is part of the banking group's strategic review that targets £1.5bn in annual savings by 2014 and marks a withdrawal from international banking.
The High Street lender has already announced 27,500 job losses since its merger with HBOS in 2009.
However, the bank said it would not close any UK branches, implying that the cuts are likely to fall on middle management and back office functions.
Among the promised changes were "better end-to-end processes and IT platforms, a de-layered management structure and simpler legal structure, [and] centralised support functions".
"This is a huge shake-up," says the BBC's business editor, Robert Peston, with consequences that "will ripple through the British economy".
Among the many changes are plans for the bank to cut the number of suppliers it uses, which will have a knock-on impact on other companies.
Markets took the news well, with Lloyds' share price jumping 7.2% in the opening minutes on the London Stock Exchange, making it the biggest climber in the FTSE 100.
'Revitalise Halifax' The strategic review was launched by the bank's new chief executive, Antonio Horta-Osorio, who left Santander's UK business to run Lloyds on 1 March.
"He wants to do as much of [the job cuts] through redeployment and natural attrition as redundancies, but there are bound to be redundancies," says Robert Peston.
"They want to bring top management closer to branch management - so there's a whole swathe of managers for whom that is incredibly bad news."
The job losses represent 14% of Lloyds Banking Group's total of 104,000 employees.
The cost-cutting programme itself will cost £2.3bn in total, but is expected to free up about £2bn for investments over 2011-14.
Lloyds said it would use the money to "revitalise Halifax" and develop its other UK businesses.
Continue reading the main story The lender also reaffirmed its commitment towards pensions and investments provider Scottish Widows.
Much of the savings will come from Lloyds' international operations, with the bank saying it plans to shut up shop in 15 of the 30 countries in which it now offers its services.
"Our aim is to become the best bank for customers," said Mr Horta-Osorio.
"We will unlock the potential in this franchise over time by creating a simpler, more agile and responsive organisation, and by making substantial investments in better-value products and services for our customers."
The Portuguese banker has already shaken up Lloyds management since he arrived, with the departure of two board members.
He has also promised to wean the bank off government-backed funding by the end of this year.
The Unite union said the review would cause "deep distress and anxiety".
David Fleming, Unite national officer, said: "This review is merely another box-ticking exercise to give this bank - which has already, since its creation two years ago, cut over 27,000 staff - an excuse to sack more employees."
Are you a Lloyds Banking Group employee? Send us your comments and experiences using the form below.
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The move is part of the banking group's strategic review that targets £1.5bn in annual savings by 2014 and marks a withdrawal from international banking.
The High Street lender has already announced 27,500 job losses since its merger with HBOS in 2009.
However, the bank said it would not close any UK branches, implying that the cuts are likely to fall on middle management and back office functions.
Among the promised changes were "better end-to-end processes and IT platforms, a de-layered management structure and simpler legal structure, [and] centralised support functions".
"This is a huge shake-up," says the BBC's business editor, Robert Peston, with consequences that "will ripple through the British economy".
Among the many changes are plans for the bank to cut the number of suppliers it uses, which will have a knock-on impact on other companies.
Markets took the news well, with Lloyds' share price jumping 7.2% in the opening minutes on the London Stock Exchange, making it the biggest climber in the FTSE 100.
'Revitalise Halifax' The strategic review was launched by the bank's new chief executive, Antonio Horta-Osorio, who left Santander's UK business to run Lloyds on 1 March.
"He wants to do as much of [the job cuts] through redeployment and natural attrition as redundancies, but there are bound to be redundancies," says Robert Peston.
"They want to bring top management closer to branch management - so there's a whole swathe of managers for whom that is incredibly bad news."
The job losses represent 14% of Lloyds Banking Group's total of 104,000 employees.
The cost-cutting programme itself will cost £2.3bn in total, but is expected to free up about £2bn for investments over 2011-14.
Lloyds said it would use the money to "revitalise Halifax" and develop its other UK businesses.
Continue reading the main story The lender also reaffirmed its commitment towards pensions and investments provider Scottish Widows.
Much of the savings will come from Lloyds' international operations, with the bank saying it plans to shut up shop in 15 of the 30 countries in which it now offers its services.
"Our aim is to become the best bank for customers," said Mr Horta-Osorio.
"We will unlock the potential in this franchise over time by creating a simpler, more agile and responsive organisation, and by making substantial investments in better-value products and services for our customers."
The Portuguese banker has already shaken up Lloyds management since he arrived, with the departure of two board members.
He has also promised to wean the bank off government-backed funding by the end of this year.
The Unite union said the review would cause "deep distress and anxiety".
David Fleming, Unite national officer, said: "This review is merely another box-ticking exercise to give this bank - which has already, since its creation two years ago, cut over 27,000 staff - an excuse to sack more employees."
Are you a Lloyds Banking Group employee? Send us your comments and experiences using the form below.
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