Layoffs Watch '14: Barclays Is Gonna Need 12,000 Empty Boxes

Author:
Updated:
Original:

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.

Barclays to Cut Up to 12,000 Jobs This Year [WSJ]

Related

News

Layoffs Watch '12: Barclays

Cuts are said to have gone down with more a-comin'. Barclays PLC is cutting about 50 employees from its equities business, the latest effort by the British bank to reduce costs at its investment-banking arm. A week ago, the U.K. lender announced internally that about 10% of the jobs at its equities business across Europe, Africa and the Middle East would be lost, a person familiar with the matter said Friday. During the first half of the year, Barclays's equities and prime services business, which employs about 500 people, saw revenue fall 12% on the year to £973 million ($1.57 billion). The business has suffered as market volumes have dried up in recent quarters...The work-force reduction could be a taste of things to come for Barclays's investment bank. At the beginning of 2009, former Barclays Chief Executive Bob Diamond hired more than 400 bankers, mainly in equities and research, as part of a drive to turn the predominately debt-focused bank into a multi-asset powerhouse. Following Mr. Diamond's departure in the wake of a rate-fixing probe, new CEO Antony Jenkins has started a review of the bank's businesses to assess their profitability and whether and how they affect the lender's reputation. This, combined with tougher regulatory requirements, is expected to result in Barclays shrinking its investment bank, analysts say. Barclays To Cut 50 Equities Jobs [WSJ]