The Newcastle call centre will close by the end of next year

Lloyds TSB has announced it is closing its Newcastle call centre, where more than 900 staff are employed, by the end of next year.

The work will be transferred to India and to other call centres around the country.

Finance union UNIFI reacted angrily to the announcement.

In a statement, Lloyds TSB said: "This has been a very difficult decision and has only been made after considerable thought and discussion.

"We operate in a fiercely competitive environment and it is vital that we find ways of running our business effectively and competitively, in order to continue to invest in the service and products we provide to our customers.

Industrial action

"We aim to manage any reduction in jobs with care and sensitivity through natural staff turnover and redeploying staff elsewhere within the Group.

"In September 2003, we announced our intention to have 1,500 jobs in India by the end of 2004, of which these roles are a part.

"No other Lloyds TSB contact centres are affected by this move."

The centre in Newcastle currently employs 986 people. Some staff are employed in part time roles, so this is equivalent to 750 full time roles.

Bernadette Fisher, UNIFI's national officer said: "This is a callous move by Lloyds TSB, jumping on the outsourcing overseas bandwagon accelerated by HSBC earlier this month, and shows that despite all Lloyds' statements on social responsibility it has no respect for staff, customers or local communities.

"It is purely in the business of generating profit without a conscience."

The union is consulting with members about the way forward, and it says a proposal for industrial action has not been ruled out.