Thursday, March 17, 2011

Lloyds to cut 570 more jobs and outsource up to 600

Ant�nio Horta-Os�rio angers unions with plans that will increase total job losses since HBOS rescue to 27,000

Ant�nio Horta-Os�rio, the new chief executive of Lloyds Banking Group, has angered unions by announcing plans to cut 570 jobs and outsource up to 600 roles.

The announcement pushes the tally of job cuts since Lloyds rescued HBOS at the height of the banking crisis close to 27,000 as the management cuts staff to reduce costs and try to bolster profits.

The bailed-out bank said the job cuts were a direct result of the integration of Lloyds and HBOS. Jobs in the wholesale, retail, insurance, group operations and human resources divisions will be lost.

Unions said that up to 600 jobs were to be outsourced. Lloyds announced 450 of those positions when it said roles inside its cheque and credit processing division would move to iPSL, a joint venture set up a decade ago by Unisys, Barclays and Lloyds TSB. HSBC is also a part-owner. The outsourcing specialist already handles such tasks for the bank and it is understood that another 110 people are likely to be transferred to other outsourcing companies shortly.

The bank, which is in the middle of a major strategic review ordered by Horta-Os�rio, insisted compulsory redundancies would be a "last resort".

Even so, Unite's national officer David Fleming, said the news would be met with "despair" by staff. "Just two weeks ago this taxpayer-supported organisation announced profits of �2.2bn. Yet this decision represents a total failure by Lloyds to recognise that this turnaround is the outcome of the work of their staff," he said.

"Unite strongly opposes any attempt by Lloyds to make compulsory redundancies and is demanding that the organisation ends this practice of drip-feeding job-loss announcements, while increasing the number of agency staff being taken on."

Horta-Os�rio has already begun to make his mark at the bank, after having taken the helm at the start of the month. Helen Weir, head of the retail bank, is leaving, as is Archie Kane, who ran the insurance business.


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Source: http://www.guardian.co.uk/business/2011/mar/17/lloyds-cuts-more-jobs

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