Lloyds tells 3,000 employees they may lose jobs over poor performance

Lloyds Banking Group to Place 3,000 Staff at Risk of Job Losses in Performance Review

Lloyds Banking Group plans to inform 3,000 employees that their positions are under review due to performance concerns, as part of a restructuring effort led by CEO Charlie Nunn.

Managers have been directed to evaluate staff performance, with roughly 5% of the bank’s 63,000 employees expected to be placed under scrutiny. If they fail to show significant improvement, their roles could be terminated. Approximately half of those affected—about 1,500—may ultimately lose their jobs.

Senior leaders, who will track progress through HR systems, aim to address low turnover among underperforming employees. With economic uncertainty making workers less likely to leave voluntarily, annual departures at Lloyds have fallen below 5%, compared to a historical average of 15%.

The move coincides with the final year of Nunn’s five-year strategy, which focuses on diversifying revenue, expanding digital banking services, and streamlining operations.

A Lloyds spokesperson stated that the performance review aligns with efforts to establish a "high-performance culture."

“To better serve our customers and achieve strong results, we are reinforcing a culture where colleagues can excel. While change can be challenging, we are committed to supporting our teams as we pursue growth and improved service,” the spokesperson said.

Ged Nichols, general secretary of the Accord union representing Lloyds employees, noted that managers had not yet been instructed to formally rank staff.

“This year, there has been greater attention on performance management, including structured support for employees falling short of targets. Our focus remains on helping members retain their jobs through this process,” Nichols said. He also urged the bank to ensure fair implementation of performance policies, including union-backed support for affected workers.

Lloyds, which operates brands like Halifax and Bank of Scotland, has a history of workforce reductions. Job cuts have accelerated under Nunn’s strategic plan.

Earlier in 2024, Lloyds announced plans to eliminate 1,600 branch positions, following a separate decision to reduce 3,000 roles, including middle management. The bank stated that new roles in digital banking and asset management would lead to a net increase in employment overall.