Lloyds Expected To Slash Thousands Of Jobs
6:03am 30th June 2011
(Updated 7:02am 30th June 2011)
Lloyds Banking Group is expected to signal thousands more job cuts as it attempts to save an extra £1bn a year in costs.
The lender, 41% owned by the taxpayer, is reportedly looking at slashing 15,000 jobs, but it is unclear whether the the new chief executive Antonio Horta-Osorio will give a specific figure.
He is expected to unveil a strategic review of the bank, detailing how he plans to turn it around.
Some 27,500 jobs have been lost since the group was formed when Lloyds TSB and HBOS merged early in 2009, so any more cuts will be a further blow to staff.
The savings - on top of the £2 billion a year already being achieved following the HBOS takeover - are likely to focus on stripping away layers of managementvand lead to hundreds of job losses at its London head office.
Mr Horta-Osorio, the Portuguese-born banker who took the post in March after being poached from rival Santander, is understood to be planning to trim the bank's overseas interests, but will promise to revive the Halifax brand and keep the Scottish Widows insurance arm.
He is also likely to reveal that Lloyds is on course for an early exit from the Bank of England's special liquidity scheme, which was set up in 2008 as a lifeline for banks battling to raise finance during the credit crunch.
The loans must be repaid by January, when the Bank of England intends to close the scheme.
He may also reveal whether the group intends to restart paying dividends next year once a European ban on payouts to shareholders is lifted.