Page last updated at 15:44 GMT, Thursday, 16 July 2009 16:44 UK

Lloyds to cut 220 Scottish jobs

Scottish Widows advert
Scottish Widows is to lose 110 jobs from its workforce

Lloyds Banking Group has announced plans to axe 220 jobs in Edinburgh, Fife and the Lothians.

Half of the jobs will be lost at Scottish Widows, which is part of the company's insurance division.

The other 110 will go in its group operations division, which includes support services such as IT.

Livingston MSP Angela Constance accused Lloyds Banking Group of using a salami slicing approach when making people redundant.

She said: "This will only increase the worries of staff at Intelligent Finance who fear their operation is being run down for lay-offs and possible closure.

"Selling Intelligent Finance as a profitable going concern to allow the business and those employed in it to keep working appears to offer a better deal than sticking with the salami slicing approach of Lloyds Group."

We appear to have Groundhog Day where thousands of staff each week are told that they are to lose their jobs, yet Lloyds Banking Group remains a state-owned bank

Finance Secretary John Swinney said the news was "disappointing".

"The company spoke to the first minister yesterday and is clearly in an ongoing process of rationalisation which is having an impact on employment across the UK," he said.

"Of course, that will be of little comfort to anyone who stands to lose their job as part of this announcement.

"This will no doubt be a difficult time for those affected and I can assure them the Scottish Government stands ready to do all it can to help."

Mr Swinney added: "Some Lloyds announcements have gone Scotland's way while some have not. The Scottish Government will continue to put forward strong arguments in favour of Lloyds retaining jobs in Scotland."

Scottish Liberal Democrat leader Tavish Scott MSP said: "This is another real blow for Lloyds workers and the Scottish economy.

"The blame for these job losses lies squarely with Alistair Darling and Gordon Brown. It is time they take responsibility for this shambles and start doing everything possible to prevent further Lloyds job cuts in Scotland."


Ten jobs will be lost in Livingston and 10 will be shed in Fife, with 200 going in Edinburgh. The cuts will affect 180 permanent staff and 40 agency workers.

The cuts are part of a shake-up which will see 1,200 posts lost across the UK next year.

Staff had been summoned to meetings in Edinburgh on Thursday morning to be told the news.

A spokesman for Unite the Union said: "We appear to have Groundhog Day where thousands of staff each week are told that they are to lose their jobs, yet Lloyds Banking Group remains a state-owned bank.

"Unite views the weekly cull of jobs a disgraceful approach by this taxpayer-supported financial institution."

Scottish Widows was taken over by Lloyds Banking Group almost a decade ago and employs about 4,000 people across the UK.

In April, it was announced that the sales teams of Scottish Widows and Clerical Medical were to be combined.

The Clerical Medical brand name was phased out and products were sold under the Scottish Widows name alone from 1 July.

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