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ClimateNE & Climate Change Schools Project support the move to a low-carbon, resilient economy and help businesses avoid risk and realise commercial opportunities. Posts by Jen Atkinson, Krista McKinzey and Harriet Thew » With the Lloyds TSB takeover of HBOS confirmed, the focus now inevitably shifts to the implications of this mega deal.
What is immediately apparent, and has been confirmed this morning, is that the implications for the vast workforce of these two institutions combined stand to be significant.
Initial estimations suggest that as many as 40,000 jobs could be at risk. The branch network of both banks will inevitably be pruned back but it is the back office functions which will bear the brunt of the cuts.
The news is understandably causing shockwaves north of the border. We can empathise with the Scots who are very conscious of the value of having mega businesses such as HBOS based in their financial capital; like the North East, Scottish businesses seem to have been prone to takeovers in recent years which ultimately see their HQ functions taken out of the country.
There will be a huge amount of anger at the implications of this takeover for Edinburgh; something that was made quite plain by First Minister Alex Salmond yesterday. And it's not just a prestige thing - there are literally thouands of Scottish jobs at risk.
HBOS employees will this morning be feeling a great deal of uncertainty about their futures. The Government has made it plain that the deal at least means that the bank will survive in the long term. But if those workers who face redundancy feel angry at the way the actions of their bosses have cost them their futures, it's entirely understandable.
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