Lloyds Banking Group is planning to hire 4,000 permanent employees in technology and data roles in India by the end of 2025, according to a Financial Times report. These hires will account for nearly half of Lloyds’ global technology workforce, a source familiar with the matter stated.
Meanwhile, 6,000 UK IT employees have been warned that their jobs are at risk as the bank conducts a review of its engineering workforce. While Lloyds plans to create 1,200 new high-skilled roles, affected employees must reapply through a competitive selection process. The bank’s Chief Operating Officer, Ron van Kemenade, acknowledged that some employees might not secure new positions due to skillset mismatches, location constraints, and reduced demand for certain roles.
Union Backlash Against Lloyds
The Banking, Insurance & Finance Union (BTU) has strongly criticized Lloyds’ decision, calling it an act of “breathtaking hypocrisy” that contradicts its commitment to “helping Britain prosper.” The union argues that shifting jobs overseas undermines the UK workforce, especially when the bank is actively cutting jobs domestically.
As part of its broader restructuring plan, Lloyds also plans to:
- Cut 500 additional jobs across various departments
- Close two offices
- Shut down 136 UK branches
A Lloyds spokesperson defended the restructuring, stating that while the bank is creating new roles and upskilling employees, job reductions are an inevitable part of transformation efforts.
Lloyds’ Cost-Cutting Strategy & Future Plans
Lloyds’ £4 billion investment plan, spearheaded by CEO Charlie Nunn, aims to modernize operations, enhance digital banking services, and improve profitability. The bank is focusing on technology-driven initiatives, which include leveraging artificial intelligence, cloud computing, and automation to streamline banking operations.
The decision to expand in India aligns with a broader trend of financial institutions outsourcing IT jobs to countries with lower labor costs and a skilled workforce. Other UK banks, including HSBC and Barclays, have also expanded their technology teams in India in recent years.
What’s Next?
Lloyds’ job cuts and overseas hiring strategy have fueled concerns about the future of UK’s financial sector employment. With unions pressuring the bank to reconsider, and employees facing an uncertain future, the coming months will be critical in determining whether Lloyds modifies its workforce strategy or continues with its offshore hiring plan.
