Barclays, facing pressure to bolster its financial performance, is considering a cost-cutting plan that could result in the elimination of up to 2,000 jobs, primarily within its back-office operations. The potential job cuts, which would form part of a broader strategy to reduce expenses by £1 billion over several years, are centered on Barclays Execution Services (BX), a unit responsible for consolidating support functions for the bank’s UK retail banking and international divisions.
The decision to scrutinize BX’s staffing levels stems from its significant growth in recent years, with its headcount expanding from 20,000 in 2017 to 22,300 by the end of 2022, representing over a quarter of Barclays’ total workforce. This growth has also driven up BX’s annual staff costs to £2 billion, from £1.8 billion in 2017.
Barclays CEO C.S. Venkatakrishnan, known internally as Venkat, is under increasing pressure to boost the bank’s valuation ahead of an investor presentation in February, where he is expected to unveil a fresh strategy. The proposed job cuts are seen as a potential means to achieve this goal.
While the focus is currently on BX, Barclays could ultimately decide to prioritize layoffs in other areas if deemed necessary. The bank has a history of cost-cutting measures, including bonus cuts and job reductions in its retail and investment banking businesses.
The looming job cuts are a stark reminder of the challenges facing Barclays as it navigates a difficult financial landscape. Venkat’s ability to execute a successful turnaround plan will be crucial in determining the bank’s future prospects.
