UK-based Lloyds Banking Group is, reportedly, planning to slash around 1,250 jobs in insurance sector, in an attempt to make this business area profitable.
Most of the job cuts will affect the staff selling critical illness and income protection products across the UK, reports The Guardian.
Lloyds Banking Group was quoted by the publication as saying: "As a result of significantly reduced customer demand, these products will no longer be available on a stand-alone basis.We will continue to offer protection as part of the mortgage sales process."
The job cuts are the first tranche of the 9,000 eliminations announced by Lloyds Banking Group chief executive António Horta-Osório. He also announced the closing of around 200 branches, in a bid to improve the profits of the business.
The bank is also planning to cut jobs at its finance, risk and operations areas, as a result of reduction in customer demand for the products.
The Accord union of the banking group said: "The bank’s announcement of its intention to cease the sale of standalone protection products through its bancassurance sales force is devastating news for all concerned and comes after many years of pruning and cutting staff numbers in an attempt to make this business area profitable."
Around 427 jobs will be lost at Halifax, while around 105 in Bank of Scotland, according to the union.
Image: Lloyds Bank in Halifax, West Yorkshire. Photo: courtesy of Flickr user: Tim Green aka atouch.