Lloyds Banking Group (LON: LLOY) to Cut 1,190 Insurance Jobs after HBOS Takeover

Lloyds Banking Group (LON: LLOY) has said that it will cut 1,190 insurance-related positions as part of an organizational shake-up which is expected to affect over 5,000 jobs following the Lloyds’ takeover of the Halifax Bank of Scotland.

Out of the cuts in the insurance business, 950 of the cuts will come from HBOS’ life insurance, pensions and investment business while another 240 will be cut from the company’s general insurance unit.

In a statement, Lloyds said that about 250 insurance-related redundancies were expected to be removed by releasing contractors and temporary staff, which will lead to a net reduction of 940 jobs in the bank’s insurance unit.

Some have expected that the total number of cuts across the insurance group operation and retail divisions would total 5,000 cuts.

Lloyds Banking Group said that its losses would be “significantly mitigated by redeployment and the release of contractors, temporary staff and offshore personnel”, indicating that there will likely be a net reduction of about 2,600 positions in the UK by the end of 2010.

Lloyds’ group integration director, Mark Fisher, has said that “This marks another important step in bringing our businesses together. In addition, our commitment is to keep colleagues fully informed about our integration plans. We will continue to work closely with our colleagues affected by the announcement to help them through these changes over the coming year. We have mitigated the impact on positions through redeployment and the release of contractors and temporary staff.”