Barclays has been reported to be on the verge of a significant workforce reduction, aiming to cut around 30,000 jobs by 2017.
- This move is part of their strategic effort to enhance cost efficiency and bolster their automation processes across various operations.
- According to The Times, significant job cuts are expected mainly in middle and back-office functions as Barclays aims for considerable savings.
- Despite these suggestions, Barclays has officially denied setting new job reduction targets beyond those announced in the previous year.
- Branch closures are also anticipated, which may contribute further to the reduction in workforce, reflecting a broader trend towards digital solutions.
Barclays is reportedly planning to reduce its workforce by up to 30,000 employees by 2017, according to sources cited in The Times. This strategic initiative aims to streamline operations and enhance cost-cutting measures primarily through automation and technology integration.
The targeted workforce reductions will necessitate focusing on middle and back-office roles where automation can significantly reduce manual operational costs, thereby driving savings. Currently employing approximately 130,000 individuals, Barclays has previously shed 12,000 jobs over six years, saving over £2 billion, but shareholders remain discontent with the rate of shrinkage.
Following the departure of Anthony Jenkins, John McFarlane, the newly appointed chairman, emphasized the need for accelerated revenue growth. He noted that the bank’s share prices remained static, and dividends were both low and stagnant, underscoring the urgency for strategic shifts in workforce and branch management.
Despite the alarming reports, Barclays has refuted claims of additional job cuts exceeding the 19,000 redundancies declared last year. Sources close to the bank indicated that technology-driven job reductions are inevitable over the long term, without confirming the immediate figures reported by the media.
Additionally, Barclays plans to close over 30 branches by October. This follows the previous closure of 89 branches last year and 40 already closed this year. The planned closure of branches in regions such as Farnborough and Great Missenden signifies a shift towards a more digitally-focused banking approach.
Although Barclays denies specific new targets, the trajectory suggests a leaner and technology-focused future for the bank.
