Lloyds TSB is to reduce the number of branch advisers who sell its financial products by a third.

The 600 job cuts, which could be announced this week, are in response to the slump in demand for investment products.

Insurers have highlighted in recent days the difficult market for such products, with sales during the first quarter of the year under pressure.

They have included Norwich Union owner Aviva, which last week said new business sales for life and pensions fell 22 per cent to £263 million on a year earlier.

Lloyds TSB sells insurance products through its Scottish Widows subsidiary.

Two months ago, it unveiled a 17 per cent fall in pre-tax profits at £2.6 billion.

It is thought Lloyds will attempt to avoid compulsory redundancies with branch advisers being offered alternative positions or payoffs.

The job cuts come at the end of Peter Ellwood's six-year spell as chief executive. He is due to be replaced by Eric Daniels, Lloyds' head of retail banking, at the end of May.

Mr Daniels' promotion has heralded a change of strategy at the group, which said earlier this month it would abandon its protracted search for a merger partner.

The group, which employs 79,000 people, wants to focus instead on driving growth from its existing business operations.

Lloyds TSB cut 5,000 jobs in February last year but it also created 2,000 positions in sales and service areas.