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Report: Lloyds to roll out further layoffs in expanded restructuring plan

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Report: Lloyds to roll out further layoffs in expanded restructuring plan

isspeeding up its planned restructuring and targeting additional cost cuts, the Financial Times reported July 10.

Accordingto "senior bankers briefed on the plans," Lloyds, which had plannedto cut £1 billion annually from its cost base by 2017-end, now plans to reachthat target by the end of 2016. The bank is also raising its annualized costreductions target, by 20%, to roughly £1.2 billion by 2017-end.

Accordingto analyst estimates, the expanded cost-cutting measures could result in anadditional 1,800 layoffs and at least 40 more branch closures. Lloyds'move comes amid pressure on U.K. lenders' earnings from record-lowinterest rates, which are expected to persist after Britain voted to leave theEU, the paper said.

InOctober 2014, Lloyds presented plans to slash about 9,000 jobs and close 200 branchesin an effort to cut £1 billion from its cost base annually by the end of 2017,the FT noted. Of the 9,000 roles tobe axed, 7,300 have already been cut.

Notingthe proximity of Lloyds branches, Justin Bisseker, an analyst at Schroders,said the lender can close a third of its branches "over the next fiveyears or so," the FT added.