Lloyds is axing 1,000 jobs because it's replacing humans with automation

Lloyds Banking Group is going to chop 1,000 jobs from its total headcount as part of its digitally-focused restructure.

The bank, which is now only around 10% owned by the government, is allegedly going to announce today that the roles will be lost as it closes down 150 physical branches, according to the Financial Times and Sky News.

Lloyds is investing £1.6 billion into digital services and increased automation, which means less humans will be needed to help customers with day-to-day banking.

This is all part of Lloyds’ three year plan to restructure the group. The strategy ends in 2017. Around 9,000 jobs will be lost in total. However, this restructure is set to help the bank achieve around £1 billion a year, once it is completed.

Meanwhile, Lloyds is set to become fully privatised once again next year. In October, the UK Treasury announced its “intention to fully exit from its Lloyds shareholding in the coming months, and as part of this … shares will be sold to retail investors.”

It will sell a £2 billion ($3 billion) slice of its remaining 11.98% stake in the bank to retail investors in the spring next year, without giving a specified date.

Lloyds received £20.5 billion ($31.4 billion) in state handouts between 2008 and 2009 following the credit crisis. In return, the government held a 43% stake in the lender and it has steadily chipped away at its holding.

It has since sold large chunks of the bank back to institutional investors in the private sector over the last two years.

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