The move is also partly driven by the need to put aside £900 million to help pay compensation following the mis-selling of PPI insurance. Overall the bank is hoping to make savings of £1 billion by 2017.
The bank has reduced its workforce by about 30,000 since 2008 and the latest cuts will see staff reduced by a further 10%. The bank is partly owned by the taxpayer after the government bought a 25% stake in a financial crisis bailout.
Lloyds chief executive António Horta-Osório said the streamlining over the past three years has seen Lloyds develop into a "safe, highly efficient retail and commercial bank".
"The next phase of our strategy will use these strong foundations as a basis for meeting the rapidly-changing needs of our customers, and sets out how we will grow the business in a way that will deliver increasing and sustainable returns for our shareholders," he added.
But Unite national officer Rob MacGregor warned that job cuts of around 10% could have "unknown consequences" for the bank's customers.
"The wallets of top executives at Lloyds should not be getting fat by forcing low-paid workers onto the dole. If there are compulsory redundancies or customer service suffers then executive pay should be cut,” he added.
