A MAJOR cost-cutting drive by the Lloyds Banking Group could threaten 120 jobs at its Halifax bank subsidiary in Belfast.

The Lloyds group, which is 43 per cent owned by the British taxpayer, plans to integrate key business operations in a move which will result in 5,000 job cuts across Britain.

The group, which also plans to sell off 600 branches to meet European Commission competition requirements, said “mitigating actions” could reduce the overall net job losses to about 2,600 in the UK. Lloyds said these mitigating actions included plans to redeploy staff, and release contractors, temporary staff and offshore employees.

As part of the changes, work carried out by a mortgage operation team at the Gasworks site in Belfast would transfer to other parts of the group by October 2010.

A spokesman for Lloyds said despite the potential job cuts the group would “retain a significant presence in the region”. He added: “The majority of impacted mortgage operations colleagues will be offered redeployment opportunities within the Belfast area.”