LLOYDS Banking Group operations in Chester will benefit from 340 new jobs in a shake-up that will cost 5,000 roles in other parts of the business.
The banking giant announced the redundancies in its head office, insurance and retail divisions.
The move drew condemnation from union and political leaders.
But the bank argued that after using redeployment and shedding contract and offshore staff, the shake-up will result in the loss of just 2,600 permanent roles.
Chester is a key hub for the banking group, which includes the former Halifax Bank of Scotland (HBoS) and Capital Bank businesses.
The city currently supports almost 2,500 Lloyds Banking Group jobs.
But a spokesman for the group said that as a result of yesterday’s announcement, due to be implemented by the end of 2010, Chester will gain 340 jobs.
He said: “In Chester we expect to see a net increase of 340 roles in our group operations division.”
He admitted: “There could be some role reductions in Chester, but there will be a net increase of 340.”
The new roles will be created in the areas of administration, IT, collections and recoveries, which the spokesman described as the “engine” of the bank.
“They help support all the divisions of the bank.”
He revealed that some of the additional jobs earmarked for Chester will be relocated from various locations in Yorkshire, home to Halifax’s building society operations, but he said other jobs will be entirely new roles.
The news offers some respite to banking staff in the city from job loss announcements throughout 2009.
In April Lloyds began reducing jobs to cut costs after its merger with HBoS at the height of the banking crisis.
It revealed 200 jobs would be cut at HBoS operations in Speke, Liverpool, this year and 340 would be cut in Chester.
Then in June, Lloyds confirmed that a further 265 Chester jobs would be axed from its personal loans business and more cuts were announced at telephony units, where a total of 84 roles were jettisoned.
Rob MacGregor, Unite the Union national officer, said: “This country’s financial sector should be looking towards the future, rather then continuing to slash jobs without proper consideration of how to re-build the public’s confidence in our tarnished banking sector.”
