Lloyds planning to cut 640 jobs to cut costs - sources

By Andrew MacAskill

LONDON, June 29 (Reuters) - Lloyds Banking Group (Other OTC: LLOBF - news) is planning to axe about 640 jobs, according to people familiar with the process, as Britain's largest mortgage lender continues to scale back the size of its workforce.

All the employees impacted work in information technology and back office roles and are being told of the decision on Wednesday, according to the sources, who asked not to named because they are not authorised to discuss the plans.

Lloyds, rescued in a 20.5 billion pound ($27.4 billion) taxpayer bail-out during the financial crisis, is in the midst of major restructuring, that includes eliminating large numbers of staff roles, as part of a aggressive cost-cutting programme.

"The continuation of the bank's major job loss program will bring disappointment as staff feel they have already faced two years of endless workforce cuts," said Rob MacGregor, national officer at the Unite union.

A spokesman for Lloyds declined to comment. ($1 = 0.7478 pounds) (Reporting By Andrew MacAskill, editing by Sinead Cruise)