Barclays Bank has recently confirmed a significant reduction in its workforce, cutting around 5,000 jobs globally out of its 84,000 employees last year. The move is part of a larger cost-cutting initiative aimed at simplifying and reshaping the business, with approximately a quarter of the cuts taking place in the UK.
The bank clarified that the job cuts were made to improve services and deliver higher returns. Most of the affected employees worked in back-office support teams, and the reduction in headcount was achieved through a combination of redundancies and leaving vacancies unfilled during a hiring freeze.
Barclays emphasized its commitment to supporting affected employees, providing training and advice based on their location. The changes are part of the bank’s broader plan to enhance profitability, as previously announced in its third-quarter results in October of the preceding year.
The cost-cutting measures extend beyond workforce reductions, as Barclays aims to streamline its operations and enhance technology and automation capabilities. This involves reducing management layers within the organization.
This latest announcement follows a series of steps in Barclays’ ongoing savings program, which has already witnessed job cuts across its retail and investment banking businesses. The bank has also closed nearly 200 branches in recent years, citing the decreasing reliance on face-to-face transactions.
Despite reporting pre-tax profits of £1.9bn for the three months to September, slightly surpassing analysts’ forecasts, the figures were down from £2bn the previous year. The current job cuts are considered one of the largest savings exercises at Barclays since the 2008 financial crisis.
The upcoming publication of the bank’s full-year results for 2023 next month will likely face increased scrutiny in light of these substantial workforce reductions and their potential impact on the company’s overall performance.
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