Barclays 'axing 900 UK jobs' in run-up to Christmas
The banking giant has not confirmed how many roles will go, but said it wanted to "simplify and reshape the business". Meanwhile, Union Unite branded the move "disgraceful".
By Daniel Binns, business reporter
Tuesday 28 November 2023
Barclays is to axe 900 jobs in the UK, Unite has said.
The union dubbed the move "disgraceful" and accused the bank of shedding staff in order to "further boost its massive profits".
Affected staff were told at 1pm on Tuesday, Unite said.
It comes after Barclays reported quarterly pre-tax profits of £1.9bn from July to September - which was better than expected by analysts.
The bank would not confirm how many jobs were being cut in the run-up to Christmas, but said it was "taking a number of actions to simplify and reshape the business".
It is the latest in a string of financial firms slimming down on staff numbers in recent months.
Last week it was reported that the country's biggest high street chain Lloyds was considering scrapping 2,500 roles as part of a shake-up.
Many banks have also been cutting costs this year by closing dozens of branches.
Unite said the latest Barclays cuts would affect a number of divisions, including its Barclays International arm and Barclays Execution Services, which provides technology, operations and functional services to businesses across the group.
It comes on top of 450 reported job cuts at the firm in September, along with the axing of 100 roles at its investment bank division earlier this year.
A Barclays spokesperson said the changes were aimed at improving services and "deliver[ing] higher returns".
They added: "This includes changes to our headcount as management layers are reduced and the group improves its technology and automation capabilities.
"We are committed to supporting impacted colleagues through these changes."
The company employed a total of around 22,300 staff at the end of last year.
Sharon Graham, general secretary of Unite, said: "Barclays is disgracefully cutting jobs to further boost its massive profits.
"This is a mega-rich bank that is already on course to make eye-watering profits this year."
The bank's chief executive CS 'Venkat' Venkatakrishnan revealed in October he was considering cuts as he unveiled its third quarter results.
At the time he said the bank saw "further opportunities to enhance returns for shareholders through cost efficiencies and disciplined capital allocation across the group".
Sky's Mark Kleinman revealed on Monday that Metro Bank was in talks to offload its £3bn mortgage portfolio to Barclays.
Reuters
The lender expects to take a lower-than-expected one-off restructuring charge of between 10 million pounds and 15 million pounds in 2023
Metro Bank on Thursday announced sweeping cost-cutting plans aimed at bolstering its finances, which could see the embattled British lender lay off 20% of its staff and axe some of its biggest customer perks including seven-day opening hours.
Metro, which this week received shareholder approval for a 925 million pound refinancing and recapitalisation plan backed by Colombian billionaire Jaime Gilinski, said it expected the cost reduction plan to deliver up to 50 million pounds ($63.45 million) of savings a year, with completion in the first quarter of 2024.
The lender expects to take a lower-than-expected one-off restructuring charge of between 10 million pounds and 15 million pounds in 2023.
Metro Bank did not immediately respond to a request for clarification on the precise number of roles at risk, but the lender employs around 4,000 people, according to its latest annual report.
Metro launched in 2010 to challenge the dominance of Britain's big banks but hit a string of setbacks in recent years, such as accounting errors, leadership departures and delayed regulatory approval for key capital reliefs.
In addition to the jobs cull, the lender, famous for its centrally located branch network, said it would invest in automation for back-office operations and improving digital services.
It is also reviewing its seven-day opening and extended store hours and will "selectively streamline lending" to focus on relationship banking to maximise risk-adjusted returns.
"We remain committed to stores and the high street but will transition to a more cost-efficient business model while remaining focused on customer service," Chief Executive Daniel Frumkin said in a statement.
Earlier this month, the bank said it saw a 5% drop in deposits in the third quarter but that outflows had returned to "more normal ranges" after its capital injection. Its shares have lost 68% of their value
so far this year.
Separately, it announced that three board members would step down at the end of the year, leaving the board with five non-executive and two executive directors. ($1 = 0.7873 pounds) ($1 = 0.7881 pounds) (Reporting by Yadarisa Shabong in Bengaluru, Sinead Cruise and Elizabeth Howcroft in London; Editing by Rashmi Aich, Sherry Jacob-Phillips and Sharon Singleton)
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