Lloyds Bank looks to cut nearly 800 jobs, as it says customer preferences are changing

British retail lender Lloyds Banking Group revealed its plans for a net reduction of nearly 800 jobs as part of its ongoing strategy to adapt to changing customer preferences and advancements in digital banking.

In a statement, Lloyds announced the elimination of around 1,600 jobs across its branch network. However, the bank also outlined the creation of approximately 830 positions focused on customer service, encompassing roles for engaging with customers in branches, via video meetings, or over the phone. This will result in a net reduction of approximately 769 positions.

The move reflects the broader trend in the banking industry as customers increasingly opt for online banking services over traditional in-person visits to branches.

“As more customers choose to manage their day-to-day banking online, it’s important our people are available when it matters most,” commented an Lloyds Banking Group spokesperson. “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.”

Lloyds, the parent company of Lloyds, Halifax, and Bank of Scotland, highlighted that only eight percent of customers rely solely on bank branches to manage their finances, with over 21 million customers using online or mobile banking services.

This strategic adjustment is in line with the broader industry trend, as many major UK banks have reduced branch numbers and staff to align with the increasing preference for online services, especially accelerated by the impact of the Covid pandemic.