Lloyds to warn 3,000 staff they face sack for ‘underperformance’

Lloyds Banking Group is to warn 3,000 staff that they are at risk of being sacked for underperformance, as part of a management overhaul led by the chief executive, Charlie Nunn.

The bank began telling managers over the summer that they would have to rank staff performance, with about 5% of Lloyds’ 63,000-strong workforce due to be put on performance plans that would put jobs at risk unless workers notably improved.

The warnings are part of a performance review process that gained pace in March this year, and while many staff are expected to keep their jobs, about 1,500 could end up being dismissed. It is understood that all staff are at risk, regardless of seniority.

Executives, who will monitor progress using HR software, are trying to tackle low turnover among the bank’s lowest perfo