This follows Britain’s decision to quit the European Union
July 28, 2016: Lloyds Banking Group is set to cut 3,000 jobs and shut 200 branches as it prepares for a cut in interest rates following Britain’s decision to quit the European Union, it said. The bank, which is 9 per cent owned by the government, posted a pre-tax profit of £2.5bn in the six months to June, up from £1.2bn in the same period last year.
The bank will target an extra £400m of cost savings with the removal of branches and jobs by the end of 2017. The latest measures are in addition to Lloyds’ original 2014 plan of £1bn in savings through 9,000 job cuts and 200 branch closures over a period of three years.
António Horta-Osório, chief executive of Lloyds Banking Group, said the use of branches had fallen by 15% year-on-year, faster than had been the case at the time of the previous announcement of cut jobs.
Following the EU referendum, the outlook for the UK economy is uncertain and, while the precise impact is dependent upon a number of factors, including EU negotiations and political and economic events, a deceleration of growth seems likely.
Economists expect the Bank of England to cut interest rates next week.