Lloyds is considering cutting up to 2,500 jobs as profits fall

The bank's shares have fallen this year. Photo: Toby Melville/Reuters

More than 2,500 jobs will be at risk at Lloyds next week as the bank considers cutting a number of middle management roles, including analysts and product managers.

The bank , whose shares have fallen 10% since the start of the year, admitted it faces “expected headwinds in mortgage and deposit pricing” and its lending margins are shrinking, The Guardian reports. In the third quarter, profitability was 3.08%, down 0.06 percentage points.

The bank said last month it was on track to meet its profit forecast for the year, despite acknowledging that it faces “expected headwinds in mortgage and deposit pricing” and its lending margins are shrinking. Its pre-tax profit for the first nine months of the year was £5.7 billion, up from £3.6 billion a year earlier.

The bank said its operating costs increased by 5% as a result of “higher planned strategic investments, new business costs and ongoing inflationary pressures”.

A source told The Telegraph that the restructuring was not about cost cutting It's about attracting people with the right skills to the right jobs.< br />
The bank expects that the number of job cuts will be far fewer than the 2,500 at risk, and that the bank could have 120 more people overall after the restructuring process.

The bank expects next week consultation with staff will begin.

A spokesman for Lloyds Banking Group said: “We are growing and transforming our business to ensure we can do more for our customers and provide them with the products and services they need.” .

“To achieve this, we are undertaking one of the biggest transformations in the UK financial services industry, which includes reviewing how our business and technology teams work effectively together to deliver our strategy and long-term growth . “

The restructuring comes at a time of major job losses in the banking sector, with major banks announcing the closure of almost 600 branches this year and seeking to keep their costs under control.

The Telegraph reported on Friday that Barclays is preparing to cut up to 2,000 roles as part of a £1 billion cost-cutting program.