Three of the UK’s leading financial services providers announced plans for a combined 2,000 job cuts yesterday, as the industry continues to adapt to falling branch use and consumer demand for digital services.

Lloyds is set to cut 780 roles across its branch network, but is not currently planning to close any branches as part of the move.

A spokesman for Lloyds Banking Group said:“As customers are using our branches less often, we are reducing the number of roles across our branch network. This means we can shape our service according to customer behaviour and local demand. Change does mean difficult decisions and we are focused on supporting our colleagues at this time.”

It comes after HSBC said on Tuesday that it would close 27 additional branches in the UK this year, after the global banking giant announced 35,000 job cuts worldwide following a slump in profits.

Meanwhile, Virgin Money, which became part of the CYBG Group in 2019, announced that it would be closing 52 branches with a loss of 215 jobs and a further 285 in offices in Newcastle, Leeds and Glasgow- totalling 500.

Lucy Dimes, group business transformation officer at Virgin Money UK, said: “The decision to close branches is never taken lightly. As our customers change the way they want to bank with us, we are evolving the role of our stores - investing in all of the ways that customers are choosing to bank with us, including a reimagined Virgin Money presence on the high street.

The plan for 22 full closures includes closure of six Clysedale bank branches and a project to consolidate 30 branches where Virgin Money and Clysedale are in close proximity. The group is planning to rebrand all 166 branches as Virgin Money for all operations by the September this year.

Direct Line, one of the UK’s largest insurance groups, is cutting 800 roles - equivalent to seven per cent of its workforce of 11,000 - as customers switch to interacting with the company via digital and online channels. The company’s chief executive Penny James announced plans for £60 million savings when she took the reins at the company last year.

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