BANK of Scotland (HBOS) is shedding 340 posts from Chester because of changes in the way the newly-merged company handles its motor finance.
Lloyd’s, which bought HBOS last September, will become the group’s sole motor finance brand, after a review concluded the HBOS operation was no longer viable.
The 340 job losses, which will be lost next year, represents just over 10% of HBOS’s 3,000-strong Chester workforce.
The bank, which is also shedding 200 jobs from its Speke operation, hopes to avoid compulsory redundancies where possible by filling vacancies elsewhere in the company.
A company statement said: “This change will result in the loss of 910 full-time jobs which affects 985 full and part time colleagues over a two-year period.
“The group expects there will be up to 200 jobs impacted at its centre in Speke this year and a further 340 jobs at risk in Chester next year.”
Company spokesman Mark Elliot said HBOS motor finance customers would transfer across to Lloyd’s Black Horse division. He said the decision to wind down the HBOS operation was taken before the merger with Lloyd’s.
Nationally jobs are also at risk in the sales force and at some regional collections centres.
The company statement added: “Lloyds Banking Group is committed to working through these changes with colleagues carefully and sensitively. The unions Unite, Accord and GMB were consulted before this announcement and will continue to be consulted throughout this process.”
The Group’s preference is to use natural turnover and to redeploy people wherever possible so it retains their expertise and knowledge within the Group.
A total of 240 asset finance colleagues have already transferred into “suitable alternative” roles at the retail operation in Speke.
“Where it is necessary for colleagues to leave the company, it will look to achieve this by making less use of contractors and voluntary severance. Compulsory redundancies will be a last resort,” continued the statement.
“A range of measures have been put in place to support colleagues through this uncertain time.”
David Oldfield, managing director, Asset Finance within Lloyds Banking Group Wholesale Division, said: “The decision follows a detailed review carried out last year by Bank of Scotland. These changes reflect the financial performance of these business areas, the non-core nature of much of the activity. 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.”