Lloyds cuts 200 jobs in general insurance division

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    Lloyds Banking Group, 43 percent owned by the government, will cut 200 jobs in its general insurance division by the end of January in a shake-up of back office functions, the bank said on Tuesday.

    Lloyds, which agreed to buy rival HBOS last year, said it was combining the support operations of Lloyds TSB and HBOS General Insurance, including sales, marketing, actuarial and underwriting operations.

    The bank said the jobs would be cut in locations including Wales and Yorkshire.

    Analysts have estimated that over 30,000 jobs could be cut as Lloyds integrates HBOS.

    The announcement came week after the bank said it was reviewing its decision to close its Cheltenham & Gloucester subsidiary, possibly saving 833 jobs.

    “We have no confidence in this bank’s confused strategy,” said Rob MacGregor of the union Unite.

    Philip Loney, managing director of Lloyds General Insurance unit said, “We recognise that this is difficult news for our affected colleagues.”

    “We are committed to working through these changes with our colleagues carefully and sensitively and will seek to use natural turnover and redeployment wherever possible.”

    “This steady stream of announcements and cuts is soul destroying for the workforce at this state-owned bank and it must end,” Mr MacGregor said.

    On 30 June, Lloyds said it would cut 2,100 jobs over the next three years and it also announced the closure of all Cheltenham & Gloucester branches in the same month, a decision that it has since decided to review.

    Lloyds has been struggling since it bought HBOS last September. HBOS made a loss in 2008 of almost £11bn and the two banks together are expected to make a loss this year.

    Lloyds has previously said it had created 1,200 new roles since January.