Lloyds TSB sparks job loss fears

Lloyds TSB said it would aim to cut £1.5 billion in costs after buying HBOS, sparking fears 30,000 jobs could be at risk.

With many bank closures expected in areas where there are both Lloyds TSB and HBOS branches, the higher-than-expected figure of £1.5 billion has raised speculation of widespread lay-offs.

In the shareholder circular, Lloyds TSB said the merger would lead to efficiencies but did not mention how many redundancies would be made.

Unite joint general secretary, Derek Simpson, said: "It is completely unacceptable for the banks to continue fuelling speculation while leaving their worried staff in the dark.

"We believe that if this takeover is managed properly, with the full involvement of the union, compulsory redundancies can be avoided. If anyone is forced out it should be the culprits of the credit crunch not their victims."

Lloyds TSB Group Union (LTU), the union that represents 40,000 staff working within the group, called on the bank to halt its offshoring policy to ensure UK jobs.

Steve Tatlow, assistant general secretary at LTU, said: "The quid pro quo for the support the government is giving to the creation of a 'super bank' should be that the bank's top management abandons its 'jobs to India' policy in order to safeguard the jobs of those very UK tax payers from whom it has sought financial support."

"The government mustn't let the new 'super bank' - in which it will have a substantial financial stake - get away with slashing tens of thousands of jobs without taking all reasonable steps to avoid compulsory redundancies."

This morning, Lloyds TSB and HBOS confirmed the merger is on track and unveiled the new name for the company, Lloyds Banking Group.

However, weekend reports of a rival bidder for HBOS has created uncertainty around the deal.