(Adds detail and background.) By Patricia Kowsmann Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Lloyds Banking Group PLC (LYG) said Wednesday that it will cut 650 jobs after closing an insurance site in the U.K. and shrinking staff in other locations, as it continues to streamline its operations. The 41%-government owned U.K. bank is also shutting down its Halifax Independent Agency business, which is comprised of agencies that offer limited banking services, as opposed to regular branches. Lloyds said it has decided the agencies "are no longer integral to its business model," and will close them sometime in October or November. Halifax was part of troubled U.K. mortgage lender HBOS, which Lloyds took over in early 2009. Earlier this year, the bank said it was closing Halifax's retail banking business in the Republic of Ireland, as the country continued to face a difficult economic environment. About 750 jobs were cut then. Excluding the agencies staff, who aren't actually employed by the bank, the number of positions being cut in the latest exercise are 1,850. Because some employees have been transferred elsewhere, the actual number has dropped to 650, Lloyds said. To ease customer disruption due to the closure of the Halifax agencies, the bank said it has entered into an agreement with U.K.'s Post Office, under which Halifax savings and banking customers will be able to deposit cash and checks in about 12,000 post office counters. -By Patricia Kowsmann, Dow Jones Newswires. Tel +44(0)207-842-9295, patricia.kowsmann@dowjones.com (END) Dow Jones Newswires June 30, 2010 07:44 ET (11:44 GMT)