The new chief executive of bailed out British bank Lloyds Banking Group (NYSE: LYG) is planning to cut another 15,000 jobs, on top of the 28,000 positions the bank has already eliminated since it merged with HBOS in early 2009.
According to the British newspaper The Daily Telegraph, Lloyd’s boss Antonio Horta-Osorio will present his plan as part of a strategy review at the end of this month.
Reports indicate that the company’s management structure could be significantly overhauled and some overseas offices could vanish. (Lloyds presently has operations in about 30 foreign countries).
The Telegraph noted that the 43,000 people who will have lost their jobs at Lloyds is equivalent to the population of Winchester, a medium-sized town in the south of England
Meanwhile, a controversy is growing over Lloyd’s plans to sell hundreds of bank branches to raise revenue. The UK Treasury may intervene in this disposition of assets since there are demands that Lloyds get rid of more units than it initially envisioned.
The European Union ordered Lloyds to unload 632 branches – however, there are reports that Britain’s Independent Commission on Banking (ICB) might pressure Lloyds to sell a greater number of branches.
A large number of domestic and foreign bank entities, including the Bank of China, are reportedly interested in acquiring Lloyds’ assets which will go on the block.
Lloyds will also seek to sell off Intelligent Finance, its online bank, which reportedly comprised 19 percent of the lender’s mortgage book.