'Lloyds Banking Group is announcing a number of organisational changes, primarily in its retail division. These changes follow a careful and detailed review by the business of the group's mortgage brands,' the group said in a statement.

It added: 'Up to 1,660 full time jobs will be affected by these changes.'

LBG said it would shut its network of 164 C&G branches but would continue to offer products, such as mortgages, under the C&G brand.

'The C&G branch network will close in November as C&G focuses on building its significant mortgage and savings direct and intermediary businesses,' it said.

'Cheltenham & Gloucester customers will continue to be able to manage their accounts at any of Lloyds TSB's more than 1,800 branches, over the phone and by post.'

LBG has now slashed more than 4,500 jobs since its creation in January, when Lloyds TSB bought rival lender HBOS which had faced collapse because it was struggling to raise funds owing to the credit crunch.

Lloyds TSB management has been sharply criticised for the purchase of HBOS, which was saddled with billions of pounds in toxic assets that have had to be covered by government money. -- AFP