Posted by: hesnotthemessiahhesaverynaughtboy | December 19, 2008

HBOS in damage limitation over job losses

The new boss of HBOS in Scotland has pledged sensitivity over job losses – which in corporate speak means that HBOS is on a damage limitation exercise.

Because the effects of large scale job losses are not simply inevitable, but will also be damaging for HBOS as a brand – at least in Scotland, where there has been a vitriolic attitude to the Lloyds TSB take-over move.

The main problem for the new Lloyds TSB-HBOS group is that it now simply has too many branches and employees – here in Nairn there are 4 banks on the high street – and this includes one Lloyds and one Bank of Scotland branch. In business terms, it’s a cause of extra expense to be trimmed.

Because of the size of HBOS in Scotland, job losses are likely to be very large – and with one third of unemployed facing potential financial ruin, in an economic crisis where repossessions could hit 75,000 over 2009, the outlook is not good.

No wonder the new Lloyds Group is showing a lot of sensitivity to brand protection.

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