Lloyds Bank is implementing a significant restructuring program that will result in the layoff of 300 engineering staff, according to reports.
The program is said to be part of Lloyds’ broader transformation strategy and aims to bolster digital services, increase efficiency, and maintain a competitive edge against emerging Fintech firms. The restructuring initiative, known as “Platform 3.0,” has been underway since 2022.
As part of this program, Lloyds introduced mandatory testing for engineering, architecture, and technical job families in October last year. Recently, approximately 6,000 employees in the bank’s tech and engineering teams were informed that their roles could be impacted by the ongoing structural changes.
The bank claims that the overhaul will lead to the creation of 1,200 “new” roles.
However, the internal labor union, BTU, has strongly criticized the initiative, branding it as a “sneaky” plot to strip workers of their existing employment rights. The union claims that this approach allows Lloyds to force staff to accept new working arrangements, potentially compromising their flexible working arrangements.
Many employees apparently have been offered one of these so-called “new” roles and may have to choose between their existing flexible working arrangements, which may have been in place for years, and keeping their jobs.
The union argues that this is part of Lloyds’ strategy that will aim to eliminate flexible working in key parts of the business.
The 300 engineering roles slated for redundancy will reportedly be offshored to the Lloyds Technology Centre in India.
This move comes just a month after Lloyds announced plans to close its contact centre in Liverpool and another major site in Dunfermline, impacting almost 2,000 staff members.
The union’s criticism highlights the concerns of employees who may be negatively affected by the restructuring program.
Like other traditional banks, Lloyds needs to update and streamline operations to adjust to the new world of Fintech and artificial intelligence. If the firm delays operational changes, it could harm the overall success of the Bank. While labor may challenge these changes, updates like this will probably continue in the coming years as more automation takes over and digital banking becomes the norm.