It is bad news for IT contractors working for Lloyds TSB as they have announced that they will be cutting 1000 It contract roles in their UK divisions. The banking giant will be cutting 4000 jobs overall as it aims to reduce its technology division to 60% of its current size. They have defended these cuts as necessary due to the creation of their streamlined IT division in partnership with HBOS.
Although contractors will be losing jobs, permanent staff will be on the receiving end of many more job losses. It is expected that the majority of cuts will fall on HBOS staff with 1700 redundancies in IT and the HBOS LBG Operations.
With regards to temporary staff, the axe will fall on Lloyds IT contracts here in the UK and abroad with 1150 and 1750 job losses respectively.
One contractor currently working in LBG operations spoke to Contractor UK. He said that LBG is “in a major integration programme due to end next year, hence the reduction of contractors…they will lose some legacy systems in 2011, hence the staff reductions. The rest of the staff that support legacy [work will follow.] It’s a simple as that – such an exercise has been done before and will no doubt be done again in the future.”
Speaking on behalf of the Lloyds TSB Group Union (LTU), general secretary Steve Tatlow, commented on the effect these cuts will have on the individuals who lose their jobs: “The IT jobs sector in the UK is going to be flooded with highly skilled professionals over the next 18 months. [As] over 3,200 LBG staff and contractors begin to seek work outside of the bank, there can be little doubt that areas such as Edinburgh, Halifax, Leeds and Chester will be unable to easily absorb such large numbers”.