The cuts are being made to the group operations, insurance, retail, wealth, international and commercial departments.
This is the latest in a series of cuts from the firm, which includes Lloyds TSB, Halifax, Scottish Widows and Bank of Scotland.
On Monday, it was announced the administration of the HBOS final salary pension scheme would be outsourced to Towers Watson, resulting in many HR job losses.
The cuts form part of the firm's strategic review announced in 2011 which hopes to cut 15,000 jobs from a total of 104,000 employees.
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A statement from the firm said: "All affected colleagues have been briefed by their line manager today. The Group's recognised unions, Accord, Unite and LTU were consulted prior to this announcement and continue to be consulted.
"The Group's policy is always to use natural turnover to redeploy people wherever possible to retain their expertise and knowledge within the Group. Where it is necessary for employees to leave the company, it will look to achieve this by offering voluntary redundancy."
A statement from union Accord said 200 of the 940 jobs lost may be outsourced to India.
Ged Nichols, Accord spokesman, said: "This is a bleak start to the year for hard-working Lloyds Banking Group employees and is bad news for the UK economy on a day when the small in unemployment numbers was supposed to be good news.
"The fact that nearly 200 of the jobs are to be outsourced to India is particularly unwelcome. Accord is certain this is not what UK taxpayers would want from a bank in which they are the largest shareholders."

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