Lloyds to shed 15,000 more jobs

kabayiri

I do not understand how our retail banks can justify shedding domestic jobs whilst retaining thousands of offshore jobs in places like India. I have first hand experience of trying to deal with well paid Indian IT staff contracted to banks, and they are not as cheap as you might imagine.

When people start to default on bank loans or mortgages due to loss of income, the banks will then be the first to turn round and complain! Oh bitter irony.

We need to wise up and protect our own.

edinburgher

and they are not as cheap as you might imagine.

But still cheaper than the UK, I suspect!

kabayiri

edinburgher wrote: »

But still cheaper than the UK, I suspect!

Ok, fun (ish!) challenge.

Give me a day rate for an Indian IT contractor I had to budget for recently (based on commitment to spend hundreds of days a month, not odd day here and there).

Here's a clue, don't even bother to start guessing below £300 a day, it's plenty higher.

worried_jim

Well it looks like most of the 15,000 jobs will be through natural wastage and these roles will go between now and 2014 so no sudden announcements about redundancies today.
This is from the Lloyds Union statement-

The Group will cut an extra £1.5bn from its annual costs of £11bn by the end of 2014 and that's on top of the £2bn already realised from the integration of Lloyds TSB and HBOS. A third of the cost savings will be reinvested back in to the business. The Group has said that 15,000 jobs will be lost as a result of the focus on costs. So, since the merger up to 42,000 jobs will then have been axed from the Group. The Group has also said that its aim over the next few years is to reduce its cost income ratio to between 42%- 44% from 50%. The Group has not yet provided a breakdown of that £1.5bn to show where the savings are going to be made, although one would expect the bulk of that saving to come from simplifying the Bank's IT systems which are on a myriad of different platforms. LTU has asked for a guarantee that jobs will be brought back from India and that all development work on the new system will be done in the UK in order to save jobs and secure vital skills for the UK economy.

· HBOS will become a "challenger" brand competing with the likes of Nationwide and Santander and internally with Lloyds TSB in an attempt to show the Banking Commission that there is significant competition between the brands. Lloyds TSB will continue to compete with high street Clearing Banks such as Natwest, Barclays and HSBC. Some of the savings from the focus on costs will go towards creating a new suite of Halifax products. What investment is there going to be in the LTSB Network or other key areas of activity? Even after Verde, Halifax will still only account for about a third of the Group's total Network.

· Despite earlier reports of its likely demise Scottish Widows and SWIP will continue to provide the Group with pension, insurance and investment products.

· The Bank has said that it will retreat from its overseas businesses and focus on its UK operations.

If the Bank is going to cut another 15,000 jobs then those 5,000 jobs that are currently being done in India should be brought back immediately to the UK so that they can be filled by staff who will be made redundant as a result of the Group's Strategic Review. The Bank is 41% owned by the taxpayer and it has a special responsibility to secure jobs in the UK and limit the impact of compulsory redundancy on Lloyds Banking Group staff.

The economic environment is tough, growth in the economy is slow, regulation is unrelenting and profits are going to be hit by the sale of the Verde business. What's not clear from this Strategic Review is how growth is going to be created and profits restored. It seems that Lloyds is cutting costs and jobs simply in order to stand still. But haemorrhaging so many jobs and adopting a slash and burn policy to costs is inevitably going to undermine customer service levels. If customer attrition increases and service levels deteriorate then the Group's strategy of becoming smaller in order to get bigger will fail miserably. The Group will simply become smaller and thousands more jobs will be axed.

Moreover, this Strategic Review potentially has a short shelf life given the Banking Commission could insist that the Group sells significantly more branches. If that happens, then the Group's multi-brand strategy would be ripped to shreds and one of the key strategic brands would have to be dumped. The impact on jobs and branches would be devastating for staff and local communities and would make 15,000 job losses look like a mere drop in the ocean.

worried_jim

Some really good further comments here-

http://www.bbc.co.uk/news/business-13972388

1984ReturnsForReal_2

worried_jim wrote: »

Some really good further comments here-

http://www.bbc.co.uk/news/business-13972388

I like this one

"The aim, which would be good news for all of us as taxpayers" -Reprter

Reader - On a narrow view. On a wider view Lloyds is dumping a load of people in its employment and the employment of its suppliers on the dole queue and benefits system - which if you recall is paid for by the state.

Government cannot act like a business because what it 'saves' inevitably shows up as a 'cost' elsewhere on the balance sheet.

worried_jim

1984ReturnsForReal wrote: »

I like this one

The 15,000 are pretty employable elsewhere and shouldn't spend to long on benefits, if at all.

The_White_Horse

they will be able to join the next march for public sector pensions if they aren't working. afterall, as they said in their open letter - they are doing it for the public.

how nice is that???? they are doing this for you and me - not their own pockets. no way. they are doing it, FOR THE PUBLIC. they are nothing short of saints. hard working, efficient productive saints. and every single one of them is a nurse and a teacher. all of them. sainthood is not enough for these people. they should all be beaten, i mean, beatified immediately. the miracle required is just the fact they turn up for work at all under the oppresive regime they are under. angels. i especially liked the teacher who had a mispelled sign. "down with the governmant" he said. but then, he blamed the spelling error on... a nurse. she must have been too busy saving someones life to spell the sign correctly. the angel. she only earns 3000 a year. and when she signed up for the job she was told she would earn 60k a year. she was lied to and misrepresented by the fithy governmAnt i bet.

hopefully these poor downtrodden people will get what they want and in a few years, we to can be like greece. these heroes. these wonderous angels in the public sector without whom, we would not eat 5 a day.

1984ReturnsForReal_2

worried_jim wrote: »

The 15,000 are pretty employable elsewhere and shouldn't spend to long on benefits, if at all.

That depends on a whole load of variables.

Jennifer_Jane

What happened when my private sector/publicly listed company restructured, it was the older people (above 50) who volunteered for redundancy. They were usually people who had some years behind them and were able, then, to retire early without penalty and who got fabulous redundancy payments (hundreds of pounds). They were mostly on the older pension schemes and were looking forward to leaving the daily grind and doing things which interested them. Far from feeling sorry for them, I felt envious.

Hope that this applies to the Lloyds people - but it may be that they are not becoming dependent on the welfare state.