Lloyds Bank to axe 3,000 jobs and close 200 more branches

Lloyds Banking Group is to axe 3,000 jobs and close a further 200 branches in a bid to cut costs in anticipation of a cut in interest rates.

The bank is blaming a fall in the use of branches by customers and anticipated cuts to interest rates following the vote for Brexit last month for the decision to cut jobs.

The bank had already earmarked 200 branches for closure by 2017 in plans made three years ago so the latest announcement means that 400 will be shut by the end of next year.

Mark Carney, the Bank of England governor, signalled a rate cut would take place during the summer and the City now expects rates will be cut from their 0.5% historic low on August 4.

“Following the EU referendum the outlook for the UK economy is uncertain and, while the precise impact is dependent upon a number of factors including EU negotiations and political and economic events, a deceleration of growth seems likely,” said Lloyds chief executive António Horta-Osório

“The UK, however, enters this period of uncertainty from a position of strength, following continued private sector deleveraging, significantly improved mortgage affordability and low levels of unemployment.”

Ged Nichols, general secretary of the Accord union, which represents 22,000 staff who joined Lloyds from Halifax, said he was seeking urgent talks with the bank.

He said: “The loyal, dedicated and customer-focused employees in the Lloyds BankingGroup are still reeling from recent job losses.

“They will be bewildered by today’s news and wonder what has happened that is so catastrophic that these further job cuts and branch closures are necessary. Interest rates might be lower for longer but why are job losses higher and faster? Where will the axe fall next?”

Image use courtesy of http://www.moneybright.co.uk