LONDON (TIP): Britain’s Lloyds Banking Group said it plans to eliminate 3,000 jobs and close 200 branches — the first big cuts announced since Britain voted to leave the European Union.
Lloyds is expanding its cost-savings program because of changing consumer behavior and the expectation that interest rates will now remain lower for a longer period than previously expected as a result of the vote, the bank said. The cuts, which are equivalent to about 4 percent of Lloyds’ workforce and almost 10 percent of its branch network, come in addition to previously announced reductions and are expected to save an additional 400 million pounds ($528 million) annually.
“Following the EU referendum, the outlook for the U.K. economy is uncertain and, while the precise impact is dependent upon a number of factors including EU negotiations and political and economic events, a deceleration in growth seems likely,” CEO Antonio Horta-Osorio said in a statement.
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