On the heels of the good news that Barclays would be increasing the bonus pool this year, which came on the heels of the bad news that the bank posted a loss for the fourth quarter, comes the not great news that about one in ten of you will be asked to pack your things and leave by the end of 2014. For those of you trying to get a sense of your odds (of being cut), they increase significantly if you happen to be based in the UK. And if you think having the words “managing director” on your business card will save you, think again.
Barclays Chief Executive Antony Jenkins said the bank will continue to crack down on costs wherever possible and is taking “bold decisions” to reposition its business. He laid out a restructuring program a year ago to exit unprofitable businesses and shave £1.7 billion from the bank’s annual cost base. So far, the program has cost Barclays £1.2 billion, including technology investments aimed at moving more customers online and out of branches. This year, the bank will reduce its 139,600-strong workforce by up to 9%. Around 7,000 of the job cuts will be in Britain, with the rest spread across its global operations. Some of the cuts will be at the highest level, Mr. Jenkins said, with 220 managing directors facing the ax. Barclays’s decision to increase staff bonuses for 2013 despite lower revenue and profit prompted a backlash.