Lloyds Banking Group Eyes Cost Reductions Amid Performance Shake-Up

A source has revealed that approximately 3,000 employees at Britain's Lloyds Banking Group, identified as the bottom 5% of the workforce, could face dismissal as CEO Charlie Nunn implements cost-cutting strategies.

Lloyds anticipates that about half of these employees might lose their positions unless there is a marked improvement in their performance. The bank, despite reducing its high street branches, does not plan job cuts from these closures. Economic uncertainties contribute to fewer job changes within the workforce. According to a Financial Times report, the company's employee attrition rate has decreased to 5% from a historical average of 15%.

In a bid to create a high-performance culture, Lloyds will place underperforming staff on 'structured support' plans. Lloyds' spokesperson noted the company's transformation efforts and aspirations for growth, while acknowledging the discomfort that change may bring.

(With inputs from agencies.)