Lloyds Banking Group is set to put thousands of its “lowest-performing” staff at risk of losing their jobs as it continues to pursue an overhauled strategy to embed a “high-performance culture”.
The group, which covers Lloyds Bank, the Halifax Building Society and Bank of Scotland, plans to change how it monitors the performance of its employees and manages staff turnover.
Among its workforce – which totalled about 61,200 at the end of 2024 – about 3,000 people viewed to be among the bottom 5 per cent are set to be put at risk of dismissal.
However, The Independent understands there won’t be an overall pursuit of jobs cuts; rather, those who do not increase performance levels will be replaced by new arrivals.
It is also understood there is no fixed target for the numbers or staff who must be included in the review or where the changes will occur.
Rather, the new approach will mean employees who managers deem to be underperforming could be put on “structured support” plans – but face losing their jobs if improvements are not ultimately made.
It is understood that bosses at Lloyds are keen to address low rates of turnover among its employees – meaning more people are staying with the business for longer – and aligning it with other banks.
The Financial Times reported that current turnover at the group is about 5 per cent a year compared to an average of closer to 15 per cent historically, citing a person familiar with the matter.
A spokesperson for Lloyds said it was focused on “transforming our business”.
“As we build highly-skilled teams to move faster forward and deliver great outcomes for our customers, we are striving to embed a high-performance culture in the organisation,” a statement said. “To achieve this, and in line with wider industry practice, we continuously look for ways to help our colleagues perform at their best.
“We know change can be uncomfortable, but we are excited about the opportunities ahead as we propel forward to achieve our growth ambitions and delivering exceptional customer experiences.”
The shake-up comes after the government announced a new package of reforms designed to reintroduce “informed risk-taking” to the UK’s financial sector, which was stripped back after the 2008 financial crisis. Chancellor Rachel Reeves said companies ought to avoid “excessive caution” and strive for growth and investment.
At the start of this year, Lloyds announced changes which meant bankers could face bonus cuts unless they upped their in-office days. More recently, the share price, which is up 45 per cent this year, rose sharply when courts ruled the sums payable over car finance mis-selling claims would be at the lower end of the expected amounts.
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