Barclays is reportedly planning to cut up to 30,000 jobs by 2017 as part of its cost-cutting strategy and corporate reorganization.
- These potential layoffs could affect one in four employees, particularly in middle and back office operations.
- Automation of manual processes in the retail sector is central to achieving these intended savings.
- Barclays has already reduced its workforce by 12,000 in recent years, saving over £2 billion.
- Despite the reports, Barclays denies setting new job-cutting targets, beyond the previously announced 19,000 redundancies.
Barclays, a significant banking institution, is allegedly preparing to cut as many as 30,000 jobs by 2017. This decision arises from the need to expedite cost-cutting measures as part of a broader corporate reorganization. The Times, citing senior bank sources, highlighted that this would affect approximately one in four Barclays employees, targeting primarily middle and back office roles where the most substantial cost reductions can be realized.
Automation is a focal point of this strategy, specifically in the bank’s retail operations. By updating and automating manual processes, Barclays aims to streamline its operations and reduce personnel costs significantly. Barclays currently employs around 130,000 individuals, indicating a tangible impact on its global workforce should these changes be implemented.
The bank has a history of workforce reduction, having decreased its employee numbers by 12,000 in the past six years. This previous reduction was part of a redundancy program initiated in 2014, which purportedly saved the bank over £2 billion. Nevertheless, the anticipated job cuts have not satisfied shareholder expectations, particularly regarding the bank’s stagnant share price and low dividends over this period.
Recent leadership changes have influenced these reported decisions. John McFarlane, newly appointed as chairman, expressed the necessity for faster revenue growth. This has occurred alongside the departure of Anthony Jenkins, who was considered lenient on redundancy matters. Despite The Times’ claims, Barclays has refuted these new job cut targets, adhering to the 19,000 job cuts announced earlier.
Documents also suggest the closure of more than 30 branches by October, building on the closure of 129 branches over the previous year. This includes branches in specific areas such as Farnborough, Kent, and Cosham, Hampshire, which are slated for closure. These actions are part of Barclays’ ongoing effort to optimize operations through technology and infrastructural realignment.
The evolving landscape at Barclays highlights the complex challenge of balancing cost-cutting with strategic growth.
