Lloyds Banking Group is set to make significant changes to its workforce by eliminating hundreds of permanent IT positions in the UK while simultaneously expanding its engineering team in India. According to a report by the Financial Times, the bank aims to employ 4,000 permanent staff members in India by the end of the year. These new hires will work at a technology center in Hyderabad that was established in 2023, focusing on highly skilled positions.
As a result of this strategic shift, it is projected that by 2025, approximately half of Lloyds’ engineering workforce will be based outside the UK. This initiative is part of a larger restructuring effort that aims to create around 1,200 high-skilled technology jobs. However, this review process has raised concerns, with around 6,000 employees in the UK recently notified that their positions may be at risk. These employees will undergo a reassessment of their skills and will be required to apply for newly available roles by March.
In a recent communication to employees, Chief Operating Officer Ron van Kemenade acknowledged that while many staff members would transition into new roles, some individuals may not secure a position due to factors such as skill sets, geographical location, and reduced demand for specific roles.
It’s worth noting that other banks in the UK, including NatWest and Nationwide, have also opted to outsource IT functions to India. In a related move, Lloyds announced plans to close 292 branches by 2025, with further reductions involving 61 Lloyds branches, 61 Halifax branches, and 14 Bank of Scotland branches scheduled for closure between now and next March.
In an official statement, Lloyds emphasized the importance of driving innovation and efficiency within the organization, asserting, “Making changes means not only creating new roles and upskilling colleagues but also saying goodbye to talented people who have been part of the group’s success in the past.”