According to the New Model Adviser, Lloyds Banking Group job cuts are in line with a strategic review to eventually save £1.5 billion, as 500 more staff within their finance and retail sector are shown the door.
The recent axing of jobs has now brought the total loss to approximately 30,000 following the banking crisis which began in 2008; more than 13,000 of these job losses have taken place over the last 3 years.
The working environment of Lloyds has also been greatly affected as staff have been pushed to reach targets set to soar exceedingly higher than that of their normal regime. Furthermore, the employees have then been released following these requests. The question really lies in what kind of ship are Lloyds really running? Morals are being questioned between the workers affected as tensions rise in the workplace, colleagues now look to question their own positions and job security.
Antonio Horta-Osorio, currently Chief Executive at Lloyds, has taken steps to counter a pitiable share performance during the first four months of employment with the bank. ’We will unlock the potential of this franchise over time by creating a simpler, more agile and responsive organisation, and by making substantial investments in better-value products and services for our customers, to deliver strong, stable and substantial returns for our shareholders.’
In a recent release by Reuters; the UK government owned (25%) bank will ensure that 175 of the cuts would come from temporary agency staff and/or unfilled vacant positions. Impressive as it may be those 175 barely dent the total 30,000 jobs sacrificed in recent years.
Rob MacGregor, National Officer says: "We have major concerns that Lloyds seems comfortable in announcing continuous salami-slicing job losses on a bi-monthly basis” as the organisation seems to be continuously found in the press spotlight. This year’s moves have already seen the bank cut 1,080 roles in January, followed by a further 645 roles in May this year alone.
Interestingly, in a new report by Money Marketing, it claims the banking giant has also set aside £225 million for asset safeguarding advice, bringing the total provisions to £525 million as a result of the human resource decisions. This presents a further argument into personnel morals as the bank announced a pre-tax profit of £863 million in the first half of 2014 following; a hard hitting scandal involving the misspelling of PPI.
It could be said that subsequent to the numerous problems the bank has experienced in recent years, this could finally be a step in a safer direction. By reducing expenses, safeguarding assets and seeking expert and certified advice regarding future product and service investment, the move could see the bank enjoying a brighter future. Nevertheless, at a cost to 30,000 people who lost their jobs due to the bank’s decisions.
Loyalty within the bank will continue to remain under scrutiny between the remaining personnel, as they have now witnessed firsthand how the company reacts under pressure. Including the decisions made towards their friends and colleagues, keeping in mind the recent pre-tax profit declaration showing a massive loss of 58% as a result of illegally venturing into misspelling payment protection.
What remains in question is how the bank will continue to treat their staff, after being heavily fined for illegalities; and when discovered, then countering the losses with decisions to sack more staff.