Lloyds Banking Group is to cut 400 IT positions in the UK as part of an organisational restructuring that will result in 1600 total redundancies, the bank said this week.
Around 100 UK job roles lost entirely, a Lloyds spokesperson said, but added that the bank expects only 34 jobs to be lost after "redeployment operations and loss due to natural attrition."
The bank said a further 300 roles will be moved to its Indian outsourcers as a "continuation of our well-established IT offshoring model." Lloyd’s would not comment on who its outsourcers are, but the company is known to have had engagements with Wipro, Cognizant and Tata Consultancy Services in the past.
In a statement, Lloyds said its offshoring model gives it flexibility to upscale and downscale its IT resource, working in partnership with "UK specialist colleagues".
In a statement on the organisational changes as a whole, Lloyds said that its "policy is always to use natural turnover [to fulfil reduction targets] and to redeploy people wherever possible to retain their expertise and knowledge within the Group.
"Where it is necessary for employees to leave the company, it will look to achieve this by offering voluntary redundancy. Compulsory redundancies will always be a last resort," the bank said.
Lloyds’ announcement has come as the UK’s other state-owned bank, RBS, announced its own job losses, with 464 staff to go from its private banking business and site closures in Bristol and Farnborough.