The next wave of redundancies in British banks

Photo: Afghan National Police

A new wave of layoffs is underway in the British banking sector. Various media outlets have reported that 2,500 jobs are at risk of disappearing from Lloyds Bank. The previous day it was announced that Barclays wanted to cut costs and possibly cut 2,000 jobs.

A source familiar with the matter told Reuters news agency that Lloyds will soon consult with employees in various positions about the interventions. This includes analysts and product managers. It is not yet clear how many people will ultimately lose their jobs. Staff will be informed of the interventions next week.

Lloyd’s management hopes to eventually have to cut fewer jobs, The Guardian writes. According to the British newspaper, the reorganization process will also lead to the creation of about 120 new positions.

Lloyds is one of the largest banks in the United Kingdom. A company spokesperson said the company is “transforming to ensure we can do more for our customers and deliver the products and services they need.” The company did not provide details about job losses.

Reuters wrote earlier this week that Barclays wants to save 1 billion pounds (1.15 billion euros). The executives of this bank are said to be looking into various proposals to enhance profitability. Barclays declined to comment.

Banks in the UK, like their counterparts elsewhere in the world, have been able to boost their profits in the wake of a series of interest rate hikes implemented by central banks. But investors are also concerned about the consequences of increased competition among lenders for consumers’ savings. Banks will also have to increase interest rates on their savings, which will reduce their interest income.

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There are also plans for reorganization at Rabobank. A spokesman for the Dutch bank confirmed after reports from Financieele Dagblad that it is looking at ways to “simplify” to become “more efficient”. The company has not yet been able to determine whether jobs will be lost or not.

Megan Vasquez

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