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Lloyds Banking Group PLC Axes 1,400 Jobs In Revamp

Lloyds_TSB

The shares in Lloyds (LSE: LLOY) (NYSE: LYG.US) added 3p to 84p today after news hit in the weekend papers that earnings were set to exceed expectations.

Today, the group confirmed its intention to cut nearly 1,100 jobs while outsourcing another 300 roles. The job losses are part of a previously announced self-imposed strategic review.

In 2011 the bank announced that it would cut 15,000 jobs, with the latest cuts meaning that a little shy of 12,000 jobs have now been shed.

The lender, part owned by the taxpayer,  added that it will aim to create more than 90 new roles across its retail, risk and commercial banking divisions.

A Lloyds spokesman had the following to say:

“[The company] is committed to working through these changes with employees in a careful and sensitive way,”

“Where it is necessary for employees to leave the company, it will look to achieve this by offering voluntary redundancy.”

“Compulsory redundancies will always be a last resort. In fact, since the Strategic Review in 2011 around only a third of role reductions have led to people leaving the [company] through redundancy.”

Prior to today City experts were expecting Lloyds’ upcoming annual results to show earnings at 7p per share and, while there is no dividend at present, it is widely expected that dividend payments will be reintroduced this year.

Following today’s price movement shares may therefore trade on a P/E of 12.

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> Mark does not own shares in Lloyds Banking Group.