Lloyds is reportedly telling staff to reduce their use of taxis and business class flights.
It’s part of the British banking giant’s attempt to cut costs amid a $5 billion strategic overhaul, the Financial Times (FT) reported Monday (July 15).
To that end, Lloyds is making a “few adjustments” to its travel policy to slash costs and reduce its carbon footprint, the FT said, citing a memo sent to Lloyds’ corporate and institutional banking staff earlier this month.
The bank is now limiting business class flights to international journeys of more than six hours, while domestic flights should be avoided, the memo said, adding that taxis should only be called when “no other viable or safe method of transportation is available.”
“As we grow and expand our business … it’s important that we also keep a tight grip on our costs — particularly where our personal choices have a great impact,” Nick Laird, Lloyds’ chief operating officer, wrote in the memo. “The clearest example of that is our travel which has both a financial and environmental cost.”
A source told the FT the changes will apply to the bank’s 60,000-member workforce.
The report comes weeks after one by Bloomberg News that another big bank — HSBC — was asking its investment bankers to cut their expenses as lenders around the world anticipate interest rate cuts.
The bank is reportedly slowing hiring by leaving positions open or even pausing new hires altogether. It is also encouraging investment bankers to conduct at least three client meetings per day to make the most of work travel.
These moves are happening amid an anticipated uptick in business travel, as PYMNTS wrote earlier this month.
“The runway toward a corporate travel rebound has been in place, and it has been showing up in earnings and other data over the past several months,” that report said.
For example, Delta Air Lines’ record revenue in its March quarter came in part from demand for business travel, as managed corporate sales climbed 14% year over year.
Management said the trend was poised to continue this summer, with 90% of companies surveyed by the airline saying they expected their travel volumes to increase or stay the same in the June quarter and beyond.
Likewise, American Express Global Business Travel saw its global multinational customers increase their business travel in the first quarter.