THE region’s banking sector has been hit by more job cuts today after Lloyds Banking Group announced the closure of two telephony units in Chester and Speke.

The move – which affects 42 employees at each site – is part of a number of changes for the group as it restructures following the merger of Lloyds TSB and HBOS.

Up to 2,100 jobs will be affected over the next three years, although Lloyds said 350 new roles will be created in its wholesale division.

The bank said it expected 700 of the job cuts to be achieved through natural attrition and the release of contract and agency staff.

It also announced that it would not be offshoring any permanent operational roles, keeping jobs in the UK wherever possible.

Mark Fisher, director of group operations at Lloyds Banking Group, said: “By bringing the businesses together, we will be better placed for the future. Regrettably, however, some of our colleagues will be affected by our plans.

“We understand that this difficult news will be unsettling and we will be working closely with those colleagues affected.”

The Unite union said it was “astonished” at the new job losses, saying “real questions” now had to be asked about how far the bank can be allowed to go in its “systematic” slashing of staff.

Rob MacGregor, Unite's national officer, said: “This loss of over 2,000 jobs marks the largest single job loss announcement since the formation of Lloyds Banking Group in January.

“Morale is now truly low as employees across Lloyds are in a permanent state of anxiety as they see their employer announce hundreds of job losses every week.

“This Labour Government cannot afford to turn the other way as bank workers across the country are losing their jobs. This horrendous news brings the total of job losses since January in LBG to over 7,000.”