British lender Lloyds Banking Group will put about 3,000 people deemed among the bottom 5% of performers at risk of dismissal, the Financial Times reported on Thursday, citing unidentified sources.

The British bank intends to overhaul how it manages the performance of its 63,000 employees, with the bank's lowest performers set to be told their work must improve or they face the axe, the newspaper said.

Reuters could not immediately verify the report. Lloyds did not immediately respond to Reuters' request for comment.

In January, Lloyds said it will shut 136 branches in the region to match customers' transition to digital banking but will not cut jobs.

The approach was discussed at a recent meeting of the bank’s group executive committee, and comes as CEO Charlie Nunn enters the final phase of his plans to cut costs at the lender and diversify its sources of income, the report stated.

Lloyds told FT that it was "transforming" its business and "striving to embed a high-performance culture".

"In line with wider industry practice, we continuously look for ways to help our colleagues perform at their best. We know change can be uncomfortable, but we are excited about the opportunities ahead as we propel forward to achieve our growth ambitions and delivering exceptional customer experiences," the company told FT. (Reporting by Ananya Palyekar in Bengaluru; Editing by Mrigank Dhaniwala and Janane Venkatraman)