Lloyds Banking Group is looking to make further job cuts with the closure of its Sussex House contact centre

Lloyds, which merged with HBOS last October, confirmed it was planning to close the centre next May – and transfer work to other sites across the UK, it has been widely reported.

The bank said the change would affect around 535 jobs, of which 162 will be redeployed, leaving a reduction of 373 jobs.

David Nicholson, of Lloyds Banking Group's retail division told the Guardian: "As part of our integration process, we have reviewed our contact centre sites to ensure that we are operating in the best possible way. We recognise that this is difficult news for our affected colleagues.

"We are committed to working closely with them to help them look for other opportunities within the group and elsewhere between now and May next year."

Lloyds said it would try to achieve job losses through voluntary severance and making less use of contractors and agency staff, with compulsory redundancies a "last resort".