HBOS to axe 650 jobs

Halifax Bank of Scotland (HBOS) has announced that it is to cut 650 jobs.

The redundancies are part of a merger of two of its business banking divisions, a spokesperson for the bank said, and will take place over the next six months.

In addition to the job losses, around 350 staff are set to be moved into new roles within the new division.

HBOS is combining the retail sector of its business banking arm with its commercial business, which is currently within the corporate division.

'The new strategy will further enable HBOS to win selective market share from the 'big four' banks by acquiring more primary relationships from small and medium enterprises,' the bank said in a statement.

Unions have expressed their dismay at the decision. Graham Goddard, Unite's Deputy General Secretary, noted that the current economic downturn is causing many workers in the financial sector to fear for their jobs.