Lloyds is slashing 1,340 jobs

State-owned lender Lloyds Bank cut 1,340 jobs on Tuesday, as part of a restructuring plan that will see as many as 12,000 staff leave the bank in total.

The jobs will go from the operations, retail, customer products and marketing, finance and risk divisions, according to a report by BBC News.

The bank, which is 9% state-owned, announced a plan in October 2014 to cut 9,000 jobs to reduce costs and boost profit while economic growth and interest rates stagnate.

Another 3,000 cuts were announced in July, along with the closure of 220 branches, in the wake of Britain’s vote to leave the European Union.

Antonio Horta-Osorio, Lloyds CEO, warned that a “deceleration” of UK economic growth “seems likely” in the bank’s second quarter results statement.

Union leaders said they would fight the cuts.

Rob MacGregor, Unite national officer, said: “These announcements to staff across Lloyds Banking Group are horrific news for staff. 1,340 job losses within this taxpayer backed institution are wholly unacceptable.”

“Unite will oppose all job losses and challenge senior management to ensure all those affected by this latest round of announcements be offered alternative suitable employment,” MacGregor said.

NOW WATCH: STIGLITZ: The Fed could more than double its inflation target

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.