Lloyds to warn 3,000 employees of possible termination for underperformance
What's the story
Lloyds Banking Group has announced plans to warn around 3,000 staff members that they are at risk of termination for underperformance. The decision is part of a broader management overhaul led by CEO Charlie Nunn. The bank started informing managers over the summer about their new responsibility to assess employee performance. As per reports, some 5% of Lloyds's workforce will be put on performance improvement plans and face termination if they fail to show significant improvement.
Review details
Performance review process could lead to job cuts
The performance review process, which accelerated in March, could see about 1,500 employees being dismissed. The policy applies to all levels of staff within the organization. Executives will use HR software to monitor progress and address the issue of low turnover among underperformers. Despite the potential job losses, a Lloyds spokesperson said they are "striving to embed a high-performance culture in the organization."
Strategic vision
Nunn's plan aims to streamline operations
Nunn's five-year strategic plan aims to diversify income, encourage digital banking, and streamline operations. The bank has been known for major job cuts, including a January 2024 announcement to cut 1,600 branch staff. However, it also claimed at the time that it was creating thousands of new roles as part of its digital banking shift. Despite the potential job losses in the latest performance review process, many employees are expected to retain their positions.
Union reaction
Union yet to confirm ranking of staff by managers
The Accord union, which represents Lloyds workers, has not confirmed any managers have been asked to rank staff. Ged Nichols, the union's general secretary, said they are working hard to support individual members through these processes. Meanwhile, shares in Lloyds rose nearly 1% on Thursday morning after news of the management overhaul broke.