Lloyds Bank Staff Face Job Cuts as Performance Review Shake-Up Looms
Thousands of employees at Lloyds Banking Group could be at risk of losing their roles as part of a sweeping review of performance management.
The FTSE 100 lender, home to more than 63,000 workers, is tightening its grip on underperformance amid wider efforts to transform its operations and build a more agile workforce.
The overhaul aims to ensure staff deliver results aligned with Lloyds’s ambition to become more competitive and customer-focused. Those falling short of expectations will face structured support and potentially, redundancy.
A spokesperson from Lloyds told the Daily Mail: “To achieve the ambitious strategy and deliver brilliant service to customers, we are transforming our business.
As we make largely-professed brigades to move briskly forward and deliver great issues for our guests, we’re seeking to bed a high-performance culture in the organisation.
To achieve this, and in line with wider assiduity practice, we continuously look for ways to help our associates perform at their stylish.
We know change can be uncomfortable, but we’re agitated about the openings ahead as we propel forward to achieve our growth intentions and deliver exceptional client gestures. ”
Lloyds bank plans to fire the 5% weakest performing members of staff?
Does this mean those that haven’t sold enough loans?
What does ‘underperforming’ mean in banking? pic.twitter.com/UbkREYH2Ip
— TheMekon_Venus (@TheMekon_Venus) September 5, 2025
This communication underscores the bank’s intent to foster a results-driven culture, encouraging staff to rise to new challenges while navigating organisational change.
According to interposers, around 3,000 workers presently in the bottom 5 of performance rankings may face redundancy if advancements aren’t made.
Managers have already been instructed to begin ranking employees, with underperformers placed on “structured support” plans.
HR data from Workday is being used to track employee progress, helping leadership pinpoint where intervention is required.
Sharon Doherty, chief people and places officer, emphasised at a recent internal meeting: “The group needed to see higher turnover rates among underperforming staff.”
The reality is stark: Lloyds’s annual turnover rate is just 5%, well below the industry average of 15%. Many employees are reluctant to leave their roles amid ongoing economic uncertainty.
The review aligns Lloyds more nearly with US banks and investment enterprises, which routinely tie performance reviews to responsibility measures.
This is part of a broader action to ameliorate staff effectiveness and responsiveness across the group’s operations.
The drive for advanced norms is seen as a way to better equip the bank for competition in a rapidly digitising financial sector.
Performance reviews are not the only change afoot. Chief executive Charlie Nunn is driving cost-reduction efforts across the group.
In January, Lloyds blazoned plans to shut 136 branches by March coming time, a move attributed to the rising popularity of online banking.
This restructuring is viewed as essential for staying applicable in the digital age. Despite these challenges, investor confidence remains steady.
Lloyds Banking Group’s share price climbed by 0.94( 0.74 p) to 79.54 p on Thursday, marking nearly a 40 increase over the once time.
With the banking giant navigating transformation, the industry is watching closely. The question now is whether Lloyds can balance high expectations with staff morale, and deliver on its promises without alienating its workforce.
