Lloyds, the UK’s fifth largest bank, which recently reported half year profits up 15% at £2 billion (NZ$5.4 billion), is offshoring 210 jobs to India.
Of the job cuts, 100 permanent and 110 contractor IT posts will be offshored between October and March. The work will be carried out by Tata, Cognizant and Wipro.
Last March, Lloyds cut its call centre operations in India and allowed customers to start phoning their local branches again. Now, it is sending back office operations to India.
Lloyds’ IT department will be left with 2,750 internal staff. The company has 23 software programming groups.
The company has an agreement with the Unite union, formerly known as Amicus, to offer jobs to all of those losing their posts. However, it admits that these offers will not necessarily be in IT.
Those who do not wish to take the jobs may take voluntary redundancy.
A spokesperson at the bank denies the job cuts came as a result of any attempt at cost reductions to maintain the profit growth. “The driver is to make sure we have resources in place, at the right place and right time,” he says.
He says the decision is the result of a review in May to assess how to “design the IT function to better serve the needs of the whole group”.