Lloyds Banking Group has decided to cut 380 jobs as part of a re-organisation of various business divisions.
The bank said that the reorganisation will create 435 new jobs. Lloyds aims to bolster its presence in the banking sector.
The decision was announced by financial services union, Accord.
The move, according to the union, will affect employees in the banking group’s commercial banking, people and productivity, and retail and transformation divisions.
“Whilst on the face of it the plans look positive, not all existing colleagues will have the transferable skills for the newly created roles and will mean some will face redundancy,” Accord said in its statement.
In February, Lloyds Banking Group announced a three-year strategy to make an investment of £3bn in order to improve its digital service portfolio. The latest move is said to be a part of this strategy.
The Lloyds job cut follows the Royal Bank of Scotland decision to close 54 branches across England and Wales costing 258 jobs.
With the growing popularity of the digital and mobile banking services, most of the lenders were forced to close down several branches resulting in hundreds of job losses.
A Lloyds spokesperson told Reuters that the new hiring will be under the lender’s transformation division helping Lloyds Banking Group to introduce new products and services.
This year, Lloyds job cut crossed 1,300 layoffs. It also created several new roles primarily focusing on introducing digital initiatives.
Last month, Lloyds announced that its H1 earnings rose 7% to £4.2bn, supported by flat operating costs and improved margins.