Finance staff in the banking and insurance industries were warned last week to prepare for a fresh round of job cuts in the wake of the 150 branch closures announced by the Lloyds-TSB group.
Banking and insurance union BIFU said the rationalisation could mean the closure of 1,000 branches with the loss of 10,000 jobs across all departments.
Up to 300 accounts staff are under threat at Lloyds-TSB. The merger of Sun Alliance and Royal Insurance could result in the loss of 400 staff in the next year, with many more to follow as part of a programme that will see 5,000 positions lost overall.
Many of the bank jobs will go from the old TSB head office in Birmingham.
The group’s administrative hub will be Bristol. Cheltenham & Gloucester, taken over by Lloyds two years ago, will remain at Gloucester.
According to analyst Rob Thomas at Swiss investment bank UBS, several of the country’s largest building societies were also embarking on large-scale job cuts in central admin departments. The Halifax has cut 3,500 jobs in the last year, while the Nationwide has reduced its headcount by nearly 1,000.
British Airways confirmed this week that plans to outsource its finance department were to be considered by the board as part of a wide ranging strategy review that could lead to 12,000 job cuts. Chief executive Robert Ayling said he wanted the company to concentrate on flying planes and customer service.