Lloyds Banking Group places thousands of jobs in tech division under review

Lloyds Banking Group has launched a comprehensive review of numerous positions within its IT segment, with the aim of reinforcing its engineering capabilities and updating its digital banking services, according to insights from City AM.

In a move disclosed to roughly 6,000 technology and engineering employees on Wednesday, the organization indicated that their roles could be in jeopardy amid a revamp of business structures and the introduction of new positions focused on expediting tech advancements—a process understood by City AM.

It is anticipated that a four-week review will follow, after which personnel will receive confirmation of their status within the reorganized ensemble. The entire cohort of 6,000 individuals will undergo evaluation, either to be integrated into novel roles or released from the company.

Despite these potential redundancies, plans are set to increase the workforce of the team by approximately 1,200 members, ostensibly enhancing domestic tech and engineering prowess, as per a company spokesperson's statement.

"Making changes means not only creating new roles and upskilling colleagues but also saying goodbye to talented people who have been part of the group’s success in the past," stated the representative to City AM, adding, "Where that is the case, we will do everything we can to support them with the changes recently announced."

Lloyds Banking Group underlined that this strategic transformation is designed to build a "highly skilled workforce" well-equipped to spearhead the company's advance into digital banking.

Lloyds Banking Group is pursuing a comprehensive overhaul which commenced three years ago, focusing on cost management and modernisation strategies.

The ongoing revamp of its technology division is a key aspect of its initiative to enhance digital services, under the ‘Platform 3.0’ scheme.

The group, employing about 66,000 staff and housing brands such as Halifax, Bank of Scotland, and Lloyds, competes with other major UK banks in the race to digitise their banking platforms and tackle the burgeoning fintech and neobank sector.

As part of the bank's strategy, Lloyds disclosed last week the closure of 136 branches across its brands, attributing the decision to decreased foot traffic and increased popularity of its mobile banking apps. With interest rates no longer driving high profits, lenders including Lloyds are seeking ways to cut costs.

Although Lloyds' earnings have proven sturdier than some competitors, the bank acknowledged a slight dip in pre-tax profit from £1.9bn to £1.8bn year-on-year, exceeding analysts' predictions of £1.6bn.

The move towards organisational transformation at Lloyds has led to significant recruitment, with 10,000 hires in the previous year and 4,000 new engineering staff to date. As it restructures its workforce, Lloyds also plans to infuse investments into cutting-edge tools and automation that enable engineers to elevate the customer experience.

A spokesperson for the bank stated: "To achieve the ambitious strategy we launched in February 2022 and deliver better service to our customers, we are transforming our business."

"We are excited about the progress we have made, which is already delivering benefits."