Lloyds Banking Group is to warn 3,000 staff that they are at risk of being sacked for underperformance, as part of a management overhaul led by the chief executive, Charlie Nunn.<\/p>\n
Bosses have been instructed to rank staff performance, with about 5% of its 63,000-strong workforce due to be put on performance plans that will put their jobs at risk unless they notably improve. About 1,500 of those put on notice could end up losing their jobs.<\/p>\n
Executives \u2013 who will monitor progress via HR software \u2013 are trying to address low turnover among its lowest performers, with staff having been less likely to leave their jobs amid continuing economic uncertainty. Fewer than 5% of Lloyds staff are understood to be leaving the group each year, which is below the 15% historical average.<\/p>\n
It comes as Nunn enters the final year of his five-year strategic plan, which is meant to diversify income, push more customers towards digital and mobile banking, and tighten up the sprawling business.<\/p>\n
Commenting on the possible job cuts, a Lloyds spokesperson said the move was part of efforts to \u201cembed a high-performance culture in the organisation\u201d.<\/p>\n
\u201cAs 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. To achieve this, and in line with wider industry practice, we continuously look for ways to help our colleagues perform at their best.<\/p>\n
\u201cWe 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.\u201d<\/p>\n
Ged Nichols, the general secretary of the Accord union that represents Lloyds workers, said the union had not heard of any managers having yet been asked to rank staff.<\/p>\n
\u201cThere has been an increased focus on performance in Lloyds Banking<\/a> Group this year with more use of the structured support plans to help individuals who may be falling short of their performance objectives,\u201d he said. \u201cWe work hard to support individual members through these processes to help them to keep their jobs and we\u2019ll continue to do so.\u201d<\/p>\n Nichols added: \u201cWe\u2019re asking Lloyds Banking Group to reassure its staff that it will continue to uphold the integrity of the established performance management processes, including the arrangements for individuals to be supported by their trade union.\u201d<\/p>\n Lloyds, which also owns the Halifax and Bank of Scotland brands, is well known for sweeping job cuts, which have again increased as part of Nunn\u2019s strategic plan.<\/p>\n skip past newsletter promotion<\/a><\/p>\n Sign up to Business Today<\/p>\n Get set for the working day \u2013 we’ll point you to all the business news and analysis you need every morning<\/p>\n Privacy Notice: Newsletters may contain information about charities, online ads, and content funded by outside parties. If you do not have an account, we will create a guest account for you on theguardian.com<\/a> to send you this newsletter. You can complete full registration at any time. For more information about how we use your data see our Privacy Policy<\/a>. We use Google reCaptcha to protect our website and the Google Privacy Policy<\/a> and Terms of Service<\/a> apply.<\/p>\n after newsletter promotion<\/p>\n In January 2024, Lloyds Bank revealed plans to cut 1,600 staff <\/a>from its branch network, just months after confirming it would be slashing 3,000 roles<\/a> from the wider business, including middle management. The bank said at the time that it was simultaneously creating thousands of new positions that would result in a net increase in its workforce, as part of its broader shift to digital banking and asset management.<\/p>\n Earlier this year, Lloyds also started letting customers use any of its brands\u2019 branches, regardless of which lender they held accounts with, raising concerns of site closures and job cuts. It started hiring hundreds of IT engineers in India this year, prompting speculation it could start cutting more roles in the UK.<\/p>\n Nunn is also having to steel the business for a multibillion-pound compensation bill over the car finance commission scandal,<\/a> which involved drivers being overcharged via commission arrangements between lenders and car dealers as far back as 2007. Lloyds has already put aside \u00a31.2bn for potential compensation.<\/a><\/p>\n