Barclays, a leading bank, is expected to cut a significant portion of its workforce by 2017 as part of a reorganisation strategy. As many as 30,000 jobs, equating to one in four positions, are at risk as the bank seeks to streamline operations.
- The focus will be on reducing staff in middle and back office operations to achieve significant savings.
- Automation within the retail banking sector is a key tactic in reducing jobs and cutting costs.
- Barclays has a history of reducing its workforce, having already cut 12,000 jobs in recent years.
- The move has faced denials from Barclays despite numerous reports from credible sources.
Barclays, a prominent financial institution, is reportedly set to reduce its workforce by up to 30,000 jobs by the year 2017. This announcement, as reported by The Times, signifies a strategic shift aimed at accelerating its cost-cutting efforts. The potential job reductions amount to approximately 25% of its total workforce, estimated at 130,000 employees.
Middle and back office positions are particularly vulnerable, as the bank targets areas where cost savings can be maximised. Automation is at the forefront of this initiative, focusing on replacing manual processes within the retail banking sector to increase efficiency and reduce costs.
Barclays has been gradually downsizing, having already eliminated around 12,000 roles in the previous six years. This has purportedly saved the bank over £2 billion, yet the pace of job cuts appears to have not met shareholder expectations. The recently appointed chairman, John McFarlane, underscored the necessity for faster revenue growth, commenting that shareholders have seen stagnant share prices and flat dividends over the past six years.
Despite the reports, Barclays has formally denied setting new targets beyond the 19,000 job cuts announced previously. Sources acquainted with the situation have, however, suggested that technology-driven reductions remain likely in the more prolonged term.
In addition to workforce reductions, Barclays is poised to close over 30 branches by October, following the closure of 89 branches last year and 40 this year. The impending closures include branches in regions such as Farnborough, Kent, and Norfolk among others, which highlights the bank’s ongoing strategy to consolidate its operations.
The restructuring at Barclays underscores the bank’s strategic focus on cost reduction through automation and operational efficiency.
