Part-nationalised British bank Lloyds said today that it would axe another 650 jobs and shut a site in Nottingham as part of a raft of changes.
The bank also revealed plans to close a 265-strong network of Halifax-branded counters based within firms such as solicitors and estate agencies in a move expected to hit a further swathe of workers, although not directly employed by Lloyds.
Lloyds said it had struck a deal with the Post Office to allow Halifax customers to pay in cash and cheques at 12,000 branches.
Today's job losses will largely hit insurance and back office based staff in Nottingham and Chester, according to the bank.
Lloyds confirmed that as many as 1,850 bank staff were being affected by the latest drive to cut costs.
However, it said the net impact on permanent roles had been limited to 650 through redeployment and also relocation to sites such as Warrington and Speke.
Some contractual staff and temporary employees were also being let go.
Lloyds plans to close an insurance office in Nottingham and will reduce other administration functions for the retail bank at sites including Chester, where around 500 roles are being affected.
The bank added that the closure of independent Halifax counters would be staggered between October 4 and November 12.
Staff manning the counters are not on the Lloyds bank payroll, but the closures could lead to job losses within the firms in which they are employed.
Lloyds said that, where possible, it would look to take on those affected within its own Halifax network and would pay redundancy on behalf of the firms if redundancies were necessary.
It stressed that the independent agency network had already been in decline, almost halving from 475 since 2005.
The replacement Post Office arrangement will build on an existing relationship which will open up paying-in banking services to Halifax customers for the first time, while also allowing Lloyds customers to pay in, make withdrawals and check balances.
It hopes to have the facility in place within the next six weeks.
David Nicholson, managing director of Halifax Community Bank, said: "Following the completion of a strategic review, we have now taken the difficult decision that the agencies are no longer integral to our business model.
"We have thought very carefully about the potential impact today's announcement of the phased closure programme may have on our agency customers - we have deliberately strengthened our relationship with the Post Office to increase the range of transactions Halifax customers can carry out."
The job losses announced today add to 15,000 cuts already confirmed by Lloyds as it looks to save £2bn (€2.44bn) in costs year on year following the rescue takeover of Halifax Bank of Scotland.
The enlarged group is 41% owned by the British government after being bailed out amid the financial crisis and following the ill-fated HBOS deal.