Lloyds Plans Job Cuts for 3,000 Low Performers in UK

Lloyds Banking Group is set to overhaul its employee performance management system, putting around 3,000 staff—identified as the bottom 5% performers—at risk of dismissal. The plan, discussed at a recent group executive committee meeting, could result in approximately half of those targeted losing their jobs as part of CEO Charlie Nunn's broader cost-cutting and business transformation strategy. Managers have begun ranking staff performance, with underperformers being placed on structured support programs requiring improvement or facing termination. The move aims to address Lloyds’ historically low employee turnover rate, which currently stands at about 5% annually, well below the previous average of 15%, amid economic uncertainty. Lloyds emphasizes that it is striving to embed a high-performance culture and continuously seeks ways to help employees perform at their best, acknowledging that change may be uncomfortable but is necessary to achieve growth ambitions and deliver better customer experiences. The planned cuts coincide with the bank's ongoing transition to digital banking, including the closure of 136 branches earlier this year.