Lloyds cuts 1,600 jobs in its branch network while hiring 800 for the relationship growth team
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One of the leading UK banks, Lloyds Banking Group, recently announced its decision to cut around 1,600 jobs from its branch network. However, at the same time, the bank is creating over 800 new roles in its expanded “relationship growth” team.
1,600 job cuts at Lloyds as users abandon physical branches
Lloyds is cutting its branch jobs for one simple reason — users around the country are going more and more into digital banking. As such, the branches are unnecessary, while also being expensive to maintain.
Instead, Lloyds intends to focus on expanding its relationship growth team, and retool its entire service for a digital-first feature, allowing it to evolve into a fully digital bank.
To achieve these two goals, the bank has already started branch closures scheduled to take place in 2024. Many of these were announced months ago, and so far, around 120 branches were closed in this year alone.
However, Lloyds says that it still has over 21 million customers who are using its online service, or its mobile app. No matter which one users prefer, going to physical banks is becoming a thing of the past for more and more people.
Lloyds also said it will also have to shake up the way its staff works. After cutting 1,600 jons, the company intends to instruct the remaining employees on how to best support and meet the banking needs of its users. The goal is to turn Lloyds into a digital-first service
Expansion of the relationship growth team
As mentioned, Lloyds also announced around 830 new positions that are being created specifically in the relationship growth team. This is the team that will be in charge of meeting the customers With no physical branches to go to, this type of banking will be conducted through telephones and video appointments.
Of course, the bank will still keep some of its branches, eevn if they do end up being in the minority. These branches will also feature relationship growth team members, who will be expected to continue helping the customers in the same way, but in person.
The bank’s spokesperson said that, as more customers choose to manage their day-to-day banking online, it was very important for Lloyds and its people to become available when it matters most, and in the way that is currently the most popular among the consumers.
“We’re introducing a number of new roles and making changes to our branch teams so our customers can see us how and when they want to.”
