Lloyds bank has announced that there will be an additional 3000 job cuts alongside the current plans to axe 9000 jobs over the next three years. The banking group sites the concern over negative interest rates as a result of Brexit for the need to make the extra cuts.
I am somewhat sceptical about whether this is the real reason for Lloyds announcing these job cuts. My question is that if Lloyds needs to cut the jobs due to the likelihood of negative interest rates, shouldn’t all other banks be announcing similar job cuts and bank closures? Shouldn’t Lloyds have had contingency plans in place to weather the storm in the case of negative interest rates, even if it does mean a cut in profits? Negative interest rates could have been on the way without a Brexit some commentators have suggested.