HBOS plans job losses in bid to improve efficiency

By MoneyhighStreet Staff. Published on July 24, 2008 This post currently has no comments.

HBOS
Leading UK banking group HBOS has revealed that it is cutting jobs in a bid to streamline its retail and corporate divisions.

The Financial Times reported that the bank, which is currently the target of a reported takeover bid from Spanish rival BBVA, is planning on cutting 650 jobs in moves to improve efficiency.

Mark Elliot, a spokesman for HBOS, told the paper that 1,000 staff from business banking would be moved to the lender''s retail and commercial business divisions over the next 18 months.

He explained: "From today we want to take 1,000 people out of retail, move them into corporate, and then streamline the business down by 650 people. This process will be completed by the end of 2009.

"As a business we want to remove duplication of roles and this will allow us to assess the matter."

However, he stressed that services to customers would not be affected by the move and said he expected it would actually make the business "sharper".

"We want to continue to grow market share. However, to do so we need to restructure in this fashion," he concluded.

News that BBVA was considering a bid for HBOS prompted shares in the UK lender to soar more than 15 per cent yesterday, causing a recovery for the whole financial sector on the FTSE 100.