Friday 22 May 2020 11:49 am

Lloyds suspends job cuts until October amid coronavirus crisis

Lloyds Banking Group said today it has suspended all job cuts until October to help employees through the coronavirus crisis.

City A.M. revealed last month that staff already going through redundancy processes feared the bank would leave them jobless at the height of the pandemic.

Read more: Exclusive: Lloyds staff facing redundancy fear being left jobless by bank amid pandemic

Lloyds had previously suspended all new job cuts, but those already working towards exit dates were worried they would be cast out into a bleak job market.

The bank suspended exits in April and again in May with the decision taken on a rolling monthly basis.

Today the bank committed to suspend all involuntary staff exits until October.

A Lloyds spokesperson said: “We have made a number of commitments to our colleagues to address their concerns during the current crisis, including continuing to pay them in full regardless of their working circumstances.

“We have also pledged that any colleague placed on notice of redundancy will not leave the group before October. We will continue to review these and other commitments to our colleagues on an ongoing basis.”

In March the bank had committed to suspending plans to cut 780 jobs amid surging customer demand and the economic uncertainty leavers would face.

Barclays told staff last month it was halting new redundancies while the coronavirus crisis is ongoing. It said it would support staff already going through redundancy processes.

Read more: Lloyds hit by investor backlash over executive pay package

The bank said staff being made redundant would be placed on a furlough scheme similar to the government’s job retention scheme. Barclays, rather than the state, would pay 80 per cent of people’s wages.

Building society Nationwide said earlier this month it would not make any compulsory redundancies during 2020.