Lloyds Banking Group Redundancies 2025: Around 3,000 Roles
Last updated: 1 September 2026
Lloyds Banking Group has been reported to be running a performance review across its workforce alongside an ongoing programme of branch closures.
What has been publicly announced
Lloyds Banking Group was reported on 4 September 2025 to have told around 3,000 employees, roughly 5% of its approximately 63,000-strong workforce, that they face redundancy if their performance does not improve.
Source: IBTimes UK, 4 September 2025.
Separately, Lloyds Banking Group was reported to be closing 136 branches across the UK between May 2025 and March 2026 as part of its shift to digital banking.
Source: IBTimes UK, 4 September 2025.
The 136 branch closures were reported to comprise 61 Lloyds, 61 Halifax and 14 Bank of Scotland branches, and the bank said staff at affected branches would be offered other roles within the group rather than made redundant outright.
Source: Insider Media, 29 January 2025.
This page reports only what has been publicly announced, with a source and date against every claim. It does not suggest Lloyds Banking Group has acted unlawfully, and nothing here should be read as a comment on the merits of any individual case.
Who is affected and what this means for you
Roles: The performance-related cuts affect around 3,000 employees group-wide, identified through an internal performance-ranking process rather than one named department or site.
Sites and locations: Separately, 136 branches (61 Lloyds, 61 Halifax and 14 Bank of Scotland) are closing between May 2025 and March 2026, with the bank saying branch staff will be offered other roles in the group.
Consultation and union involvement: Unite-affiliated union BTU and Accord, which represent Lloyds Banking Group staff, publicly criticised the performance-based approach; the bank says branch closures are being managed through redeployment rather than compulsory redundancy.
If you are a branch employee being redeployed rather than dismissed, you will usually not have an automatic right to redundancy pay unless the new role is genuinely unsuitable. If you are managed out through the performance process instead, a settlement agreement is the point to check whether the process reflects a genuine performance issue or is, in substance, a redundancy or unfair dismissal that has not been labelled as one.
Personally affected by Lloyds Banking Group?
Where are you in the process?
Choose the closest option. We will take you to the relevant questions, with no obligation to proceed.
Your rights in a redundancy at Lloyds Banking Group
Lloyds Banking Group's situation does not change the statutory rules that apply to any UK redundancy: our redundancy consultation guide covers collective consultation and protective awards, and redundancy vs settlement agreement covers how a settlement agreement interacts with a redundancy exit, including the independent legal advice you are entitled to have your employer pay for.
What you are entitled to regardless of what Lloyds Banking Group offers
Whatever Lloyds Banking Group ultimately offers, if you have at least 2 years' continuous service with Lloyds Banking Group you are entitled by law to statutory redundancy pay (a week's pay per full year of service, more for older employees, less for younger ones, capped at £751 a week and 20 years' service for 2026/27, a maximum of £22,530), your notice period or pay in lieu, accrued but untaken holiday pay, and a genuine consultation process, regardless of anything Lloyds Banking Group negotiates on top.
The most recent public reporting on this Lloyds Banking Group programme is dated 4 September 2025; nothing since has changed the statutory floor above, which you can work out for your own age, service and pay with our redundancy pay calculator (see also being made redundant: what happens next).
We have not identified a publicly sourced enhanced redundancy scheme specific to Lloyds Banking Group. If your offer states an enhanced multiple, your adviser checks it as part of the settlement agreement review below.
What to check before signing
Before you sign anything, work out what you are owed regardless of any negotiation, and what is genuinely on the table. These guides cover the detail:
Sources
- IBTimes UK, 4 September 2025.
- Insider Media, 29 January 2025.
Disclaimer
This page provides general information about a publicly reported workforce situation. It is not legal, tax or benefits advice, and your position depends on your own facts. We are not connected to Lloyds Banking Group; its name is used only to identify the publicly reported situation. Sources and dates are given for every factual claim above. For advice on your own circumstances, speak to a qualified adviser. Law as at 1 September 2026.