Lloyds TSB, the U.K.'s fifth largest bank which last week reported half year profits up 15 percent at £2 billion (US$4 billion), is offshoring 250 U.K. IT jobs to India.
Of the job cuts, 100 permanent and 110 contractor posts will be offshored between October and March. The work will be carried out by Tata Consultancy Services, Cognizant and Wipro.
Last March, the firm cut its call center operations in India and allowed customers to start phoning their local branches again. Now, it is sending back office operations out to the country.
Lloyds TSB's IT department will be left with 2,750 internal staff. The company has 23 software programming groups working on different aspects of its business.
The company has an agreement with the Unite union, formerly known as Amicus, to offer jobs to all of those losing their posts. However, it admitted these offers would not necessarily be in IT. It is hopeful that those who do not wish to take the jobs will take voluntary redundancy.
A spokesperson at the firm denied the job cuts came as a result of any attempt at cost reductions to maintain the profit growth. "The driver is to make sure we have resources in place, at the right place and right time," he said.
He claimed the company began a review in May to assess how to "design the IT function to better serve the needs of the whole group," and that this was the result of the review.
The bank is also simultaneously closing 31 branches of its Cheltenham & Gloucester division, meaning 340 non-IT job losses.