HBOS is cutting 90 IT jobs from its mortgage operations as it attempts to reduce costs.

The move also comes as the UK’s biggest mortgage lender said it wanted to reduce the complexity of its internal IT services. It has not ruled out further IT job cuts but said it did not have any further plans yet.

Most of the IT job cuts will take place by the end of the year, and will come from Edinburgh, Chester and West Yorkshire. Another 325 jobs, from a variety of roles including back office processing, will be cut from Chester, Cardiff and Livingston, as the company folds its TMB mortgage business into larger division Birmingham Midshires.

A spokesperson at Halifax said that the IT cuts were the result of HBOS wanting to “streamline service for internal clients of IT”. He added that there had been “some doubt about which team to go to for what service” as the company gained in scale.

Some 2,000 IT workers will remain at the HBOS group. This includes staff at the HBOS central IT support service called Computer Call Online, which offers a range of helpdesk support services.

In a statement, the firm said: “HBOS is making some changes within group IT to create a simpler and more effective service across the business.

“This involves bringing together common areas of practice and streamlining processes. HBOS will also be making it easier for colleagues to access IT services with fewer organisation layers and less duplication of processes.”

Graham Goddard at Unite, the trade union, said the job losses represented “a further blow for jobs in the UK financial services sector being brought about by the credit crunch and changing economic climate”.

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