It was announced this morning that Barclays is to cut 14,000 permanent staff worldwide, roughly 10% of its international workforce, with around half of the redundancies taking place in the UK. The bank had previously announced it would lay off 10,000 to 12,000 employees, but this morning upped their estimate. Combined with previously announced redundancies, this will mean Barclays cuts somewhere in the region of 10,000 UK jobs by 2016.
The layoffs are the next phase in a cost-cutting scheme which saw IT Contractor rates slashed by 10% earlier this year, leading to a contractor exodus which saw some Barclays IT departments “cleared” of contractors. Contractors were given the option to accept the cuts or move on and, with a rebounding economy and contractor vacancies on the up, most chose to seek out greener pastures.
Barclays also announced it will carve up its High Street and investment arms, creating a “bad bank” from around £115 billion in assets, to shield consumer and business customers from financial turmoil as seen in 2008.
Chief Executive Antony Jenkins tried his best to put a positive spin on what amounts to around a month of national job creation lost overnight:
“This is a bold simplification of Barclays. We will be a focused international bank, operating only in areas where we have capability, scale and competitive advantage.”
Photo by Ian