Online banking is costing branch employees their jobs...

Lloyds plans to lay off 1,600 people from its branches as part of a shift toward online banking. As part of efforts to reduce costs and steer customers toward digital services, the company plans to remove 1,600 staff members from its branch network as part of a corporate restructuring.

Lloyds, one of the UK's largest banks, announced that it is adapting to a change in behavior as more than 21 million of its 26 million customers now prefer to use its services online.

However, the layoffs may cause concern for those Lloyds customers who prefer to visit branches to manage their accounts (approximately 2 million people, or 8% of Lloyds customers).

According to a report in The Guardian, the bank will simultaneously create a relationship growth team of 830 people to offer a hybrid service that provides customers with service in-branch, via video, or through phone calls. However, there is no guarantee that these new roles will be given to the staff whose jobs are being cut.

Lloyds is closing approximately 114 branches this year. The staff cuts will generally focus on senior branch employees, while maintaining the lowest-level roles.

The staff union, Accord, hopes that most of the cuts will be based on voluntary redundancy; meaning there will be no issues if workers request to resign and, in some cases, receive compensation.

Commenting on the latest job losses, a Lloyds spokesperson said, "At a time when more customers are choosing to manage their day-to-day banking online, it is important that our people are available when they are needed most. We are introducing a range of new roles and changes to our branch teams so that our customers can see us how and when they want." Accord stated: "LBG has announced significant changes to its branch network structure and ways of working due to changes in customer behavior. This represents a significant change for the branch networks and our members."

News Source: Taner Bildik