Lloyds Bank Staff Face Job Cuts in Performance Crackdown
Lloyds Banking Group has found itself back in the spotlight, and not for the reasons its employees would hope. Reports have revealed that thousands of staff across the company may be at risk of losing their jobs, all part of a performance shake-up being pushed through by the bank’s leadership.
Here’s what’s happening: Lloyds is identifying the bottom 5% of its workforce, roughly 3,000 employees, as “underperformers.” These workers will be placed on performance plans, and unless significant improvement is shown, about half of them—around 1,500 people—could ultimately be made redundant. What makes this particularly striking is that it won’t just be front-line branch employees under scrutiny. Everyone, from junior staff to senior executives, is being evaluated.
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The move comes after Lloyds has already gone through several rounds of cuts. Just last year, more than 1,600 roles were removed in a major branch overhaul. The strategy seems to echo the controversial “rank and yank” method once used in the U.S., where companies would rank employees by performance and then remove those at the bottom. Critics argue this kind of system breeds anxiety and insecurity rather than productivity.
Unions have been quick to respond. The BTU, which represents thousands of Lloyds staff though not officially recognized by the bank, has warned that employees could end up being “hounded out of the business.” Another union, Accord, has called on Lloyds to reassure staff that the integrity of its performance management processes will be maintained. Their message is clear: staff want to know that these reviews are fair, transparent, and not just a numbers game.
On the other side, Lloyds’ leadership insists the changes are about fostering what they call a “high-performance culture.” A spokesperson has emphasized that while change can be uncomfortable, it is seen as necessary to meet growth ambitions and deliver better outcomes for customers. Analysts point out that this tougher stance may also be tied to cost-cutting and the bank’s broader shift toward digital services and offshore hiring, particularly in India.
It’s also worth noting the backdrop to all this. Staff turnover at Lloyds has been unusually low in recent years—less than 5% compared to the more typical 15% seen in the past. That means fewer underperforming staff are leaving naturally, and the bank appears to be using this shake-up to push them out. At the same time, Lloyds is dealing with costly challenges, including billions set aside for compensation over a car finance commission scandal.
So, in short, this is not just about performance targets. It’s about reshaping the workforce, cutting costs, and positioning the bank for the future. But for the thousands of people now facing reviews, it’s a deeply unsettling moment, one that raises big questions about how far a company should go in the name of efficiency.
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