Lloyds Bank is preparing to prepare up to 3,000 jobs as part of a comprehensive overhaul aiming to reduce costs and increase profitability.
The Financial Times first reported restructuring will put the lender’s minimum limit of 63,000 workers at risk of redundancy.
The decision marks the latest stage in CEO Charlie Nunn’s strategy to simplify his business, reduce spending and create new revenue streams. Managers were told to start ranking employee performance, and those “structured support” programs that felt underperformed could ultimately lead to job losses.
Analysts say the move reflects an unusually low turnover of Lloyds, which is about 5% turnover, compared to a typical 15% in the entire field. Matt Britzman, senior equity analyst at Hargreaves Lansdown, said the bank was forced to take a tougher route. He believes that the approach is “wise” given Lloyds’ quiet push for more roles, noting that the bank’s goal is to hire 4,000 employees at its Indian technology centre by the end of the year. Britzman suggests that if Lloyds can improve efficiency through competitors like Natwest and Barclays, the group can unlock meaningful profit upside.
Lloyds insists that these changes are part of a broader transformation that aims to strengthen the business and better serve customers. “We are transforming our business to achieve an ambitious strategy and deliver excellent services,” a spokesperson said. “As we build highly skilled teams to move faster and achieve great results, we are working to embed a high-performance culture throughout the organization.” The bank acknowledged that “change may be uncomfortable” but said “excited by the opportunities ahead.”
The move comes as all the largest lenders in the UK face similar pressure. Banking bosses have been speeding up cost cuts to strengthen shareholder returns in a tough environment. HSBC, led by Chief Financial Officer Georges Elhedery, has set plans to save $1.5 billion by 2026, while Natwest and Barclays have been expanding their branch network and shifting more roles overseas.
For Lloyds, the UK’s largest retail bank, the overhaul emphasized the immense pressure to modernize and remain competitive while proving to investors that it can bring about increased efficiency and stronger returns.
