Unite dubs today a “truly dark day” as hundreds of jobs are lost at Lloyds Banking Group.

Lloyds Banking Group has announced up to 1,660 jobs will be lost as part of major organisational changes that will see the closure of all 164 branches of Cheltenham & Gloucester (C&G).

Following a review of its mortgage brands, Lloyds Banking Group is set to close all of its C&G branches, and close many of its Black Horse sales centres, resulting in hundreds of job losses and potential disruption for customers.

The network of C&G branches will be closed by November 2009, and will mean 928 full-time and part-time jobs will be lost. A further 159 full-time jobs will go as the Bank of Scotland and Intelligent Finance teams shrink the intermediary sales force on 1 July. Further jobs will be lost across personal loan teams as operations are relocated, as well as within the Black Horse sales teams which will undergo a mixture of downsizing and relocation.

The company said that its preference will be to use natural turnover, make less use of contractors and redeploy people wherever possible, and says that compulsory redundancy will be a last resort.

The UK’s largest trade union, Unite, has attacked the decision to close all of the C&G branches as “disgraceful” and dubbed today (9 June) as a “truly dark day for the financial services sector in this country”.

Derek Simpson, Unite joint General Secretary commented: “This move by Lloyds will rip the heart out of hundreds of local communities up and down the country, as customers will see their valued community bank branch close.

“Hundreds of staff who have worked hard for years to make the C&G brand a success will view this news as a kick in the teeth.”

Helen Weir, Lloyds Banking Group Executive Director, Retail, said: “It is always difficult to make decisions about our business that affect our colleagues. We will work through these changes carefully and sensitively and continue to consult closely with our unions throughout the process.”