Lloyds TSB to shed 20,000 employees

When Lloyds TSB takes over Halifax Bank of Scotland (HBOS) up to 20,000 employees may well have to go as well as hundreds of branches. The new “super bank” will save £1.5 billion a year from cost-cutting synergies according to Lloyds, something that has outraged the unions.

When the takeover was announced in September Lloyds TSB said they would save £1 billion in cuts by 2011, the figure they announced yesterday is £500 million higher. The cut denotes almost 16 percent of the combined banks costs.

Chairman of Lloyds TSB, Victor Blank said “Whilst Lloyds TSB believes that the combination with HBOS will generally provide enhanced opportunities for employees, there will inevitably be some rationalisation as a result of these initiatives”.

According to analysts a merger of two large banks would on average see about 10 percent of their employees out of a job, but with Lloyds and HBOS becoming the new super bank this could easily see 20,000 staff go.

Source: Independent