Lloyds Banking Group is set to axe 645 jobs across its business sectors and wind up operations at its telephone banking centre in Cheshire, Warrington.

The job cuts are within its group operations, human resources, consumer finance, retail and commercial banking units.

According to Lloyds, the closure of call centre and job cuts is mainly due to customers preferring online banking over telephone banking.

Lloyds spokeswoman said, "Telephone banking call volumes are falling as digital banking continues to grow, and we are refocusing the business to reflect these changes in our customers’ habits, while ensuring we maintain our high standards for those who wish to continue using our telephone banking systems by bringing our telephone banking colleagues together at fewer, more specialised sites."

The closure of Warrington centre will result in loss of 180 jobs, while 120 staff members will be moving to its Speke centre.

Lloyds’ union Unite national officer Rob MacGregor said this is the third tranche of job losses since the beginning of the year and is in danger of sending staff morale to an all time low.

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"The closure of the Warrington centre will hit the local economy and risks damaging customer service," MacGregor added.

Despite cutting a total of 645 jobs, Lloyds is creating 65 new positions in its groups operations and retail unit.