Barclays to Cut 900 UK Jobs in Cost-Cutting Move

29 Nov, 2023

Barclays to Cut 900 UK Jobs in Cost-Cutting Move

Barclays is set to cut 900 jobs in the UK as part of its cost reduction strategy, as reported by trade union Unite. The union criticized the move, labeling it "disgraceful" ahead of the holiday season and asserting that it would contribute to the bank's "massive profits."

The job cuts will impact various back-office divisions, including compliance, finance, legal, policy, IT, and risk, according to Unite. While Barclays has not confirmed the exact number of job losses, the bank stated that the action is aimed at simplifying its business operations.

Affected employees were notified on Tuesday, and Unite is urging Barclays to avoid compulsory redundancies and find alternative placements for staff affected by the restructuring. The union reported securing improved payments and support for impacted workers, including those with less than two years of service.

Barclays, however, maintained that the job cuts were outlined in its third-quarter results in October. Barclays CEO CS Venkatakrishnan mentioned in October that the bank saw opportunities to enhance shareholder returns through cost efficiencies and disciplined capital allocation.

A spokesperson for Barclays confirmed the changes, stating, "We are committed to supporting impacted colleagues through these changes as management layers are reduced, and the group improves its technology and automation capabilities."

Unite's general secretary, Sharon Graham, criticized the bank's decision, stating, "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."

Barclays reported pre-tax profits of £1.9 billion for the three months ending September, slightly surpassing analysts' predictions but down from £2 billion the previous year. The bank has undergone cost-cutting measures in recent years, including job cuts across retail and investment banking and the closure of nearly 200 branches.

The job reductions at Barclays coincide with reports of potential job losses at Lloyds, where up to 2,500 jobs are reportedly at risk. Lloyds is said to be initiating consultations with staff in various roles as part of a broader restructuring effort.