Lloyds TSB axes 250 UK IT jobs, closes branches

Lloyds TSB has announced plans to axe 250 UK-based IT roles, moving them offshore in its continued strategy to offshore operational resources.

Over 100 permanent IT roles and 110 contracting positions will move offshore to be carried out by the bank's Indian suppliers, Tata Consultancy Services, Cognizant and Wipro. This will leave the bank with a remainder of 2,750 internal IT staff.

A spokesman said the company would ensure affected employees would be offered other roles within the organisation, but not necessarily with IT-related responsibilities.

He denied the move was to cut UK operational costs, but said the losses were as a result of an operational review begun in May to streamline resources to "better serve the needs of the group".

The bank also said it was also closing 31 Cheltenham & Gloucester branches, resulting in the loss of 340 further, non-IT jobs.

The restructuring news comes only a week after the fifth largest UK bank reported half-year profits that were up 15 per cent to £2 billion.

And the bank earlier this year also closed a back-office processing centre in Peterborough, moving its responsibilities to India where it already employs around 2,500 staff.

Over the last 12 months it has entered into a wide range of outsourcing agreements, the most recent of which saw it extend its relationship with Xansa last November to deliver complex, industry-specific back office processes.

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