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Investing.com -- Lloyds Banking Group (LON:LLOY) plans to place about 3,000 employees, the bottom 5% of its 63,000 staff, at risk of dismissal as part of a major performance shake-up, the Financial Times reported on Thursday, citing unnamed sources.
The initiative is designed to lift efficiency and comes as CEO Charlie Nunn finalises a strategy to cut costs and diversify income.
At a recent group executive committee meeting, Chief People and Places Officer Sharon Doherty stressed the need for greater turnover among underperformers, noting that high-performing companies routinely review their lowest 5% of staff, with around half eventually leaving.
Lloyds has seen unusually low employee turnover, at about 5% a year compared with a historical average near 15%, as staff hold on to roles during economic uncertainty.
In a statement to Reuters, the bank said it is “transforming” its business and embedding a “high-performance culture,” adding that while change may be challenging, it is vital to delivering growth and improved customer experience.
Earlier this year, Lloyds announced it would shut 136 branches to match the shift to digital banking, though without job cuts.