Lloyds Banking Group has confirmed plans to put around 175 jobs at risk as part of a company shake-up.
The bank is making changes to its risk management team as part of its efforts to speed up a transformation.
Due to this restructuring, a number of roles at Lloyds will be under threat of redundancy but the banking group has claimed more jobs will created in other areas.
In a statement, the bank said: “Making changes means not only creating new roles and upskilling colleagues in some parts of the business but also having to say goodbye to talented colleagues who have been a part of the group’s success in the past.
“Where that is unfortunately the case, we will do everything we can to support them with the changes recently announced.
“In this case, there are around 45 role reductions, after new roles being created are factored in.”
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The banking group has confirmed new job cuts
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According to new reports, a top executive at the banking group has claimed some processes are becoming time-consuming and preventing the business’s progress.
An internal memo sent to staff by chief risk officer Stephen Shelly last found month, seen by the Financial Times, confirmed Lloyds is “resetting” its “approach to risk and controls”.
Mr Shelley said two-thirds of executives consider risk management to be a blocker to its strategic transformation.
Furthermore, under half of its workforce believe “intelligent risk-taking is encouraged”, according to the reports.
The union Accord claims Mr Shelley told Lloyds staff the group needs to “face into the things that we know, or our people tell us, slows down or hinders our attempts to reach the right outcomes”.
Currently, Accord represents about 22,000 members of staff between Lloyds Banking Group and TSB.
It said the bank is making significant changes in its approach to risk management which had led to some jobs placed immediately at risk of redundancy.
As a result, an estimated 175 permanent roles at Lloyds' risk division risk being made redundant in the near future.
The firm is expected to create around 130 roles which are focused on specialist risk and technical expertise.
Furthermore, related roles at the banking group are also under threat in the wake of this restructuring plan.
A Lloyds spokeswoman noted that the bank is making progress on its transformation strategy, which it is more than two years into.
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More roles at the banking group will be created
PABanking trade union BTU questioned the timing of the group’s decision while Lloyds' motor finance arm is being investigated.
The Financial Conduct Authority (FCA) is reviewing the impact of historical commission arrangements.
A forecast by RBC suggests that Lloyds Banking Group could face an impact of £2billion, with the bank setting aside under £500million.
BTU noted that Lloyds’ decision to ease back on risk controls could have severe consequences for the bank.