Lloyds axes 5,000

10th Nov 2009 11:24

State-controlled bank Lloyds Banking is axing a further 5,000 jobs to bring the total number of posts cut following its merger with HBOS to 12,500. The bank's insurance, retail mortgage and back office functions will bear the brunt of the latest cutbacks, with about 2,600 permanent jobs to go alongside temporary and contracting positions. Lloyds has now cut 9,000 permanent jobs since its merger with HBOS is January, but analysts expect the blood letting to go much deeper still. Unions slammed the decision, which comes just a week after Lloyds announced a £21bn fund raising, including an extra £5.7bn coming from the UK taxpayer to maintain the government's stake in the bank to 43%. The government had already advanced Lloyds £17bn."This country's financial sector should be looking towards the future, rather then continuing to slash jobs without proper consideration of how to re-build the public's confidence in our tarnished banking sector," Unite national officer Rob MacGregor said in a statement.Lloyds said that 2,820 positions would go in the back office. The insurance businesses, which include Clerical Medical, will see a net 1,350 posts go, while the retail mortgage operations will be consolidated lose 950 roles, reduced to 270 after relocations.