Barclays bank has officially confirmed a significant reduction in its global workforce as part of an extensive cost-cutting initiative. Approximately 5,000 positions were eliminated from its total workforce of 84,000 last year, with around a quarter of the cuts taking place in the United Kingdom.
The bank clarified that the job cuts were aimed at simplifying and reshaping the business, emphasizing its commitment to providing support to affected employees through training and advice, depending on their location. The reduction in headcount was achieved through a combination of redundancies and leaving vacancies unfilled during a hiring freeze, as initially reported by Sky News.
A spokesperson for Barclays stated that these changes were implemented to enhance service quality and generate higher returns. Most affected employees were from back-office support teams, reflecting a streamlining of management layers and improvements in technology and automation capabilities.
Barclays asserted that these cuts were in line with its plans to enhance profitability, as previously disclosed in its third-quarter results in October of the preceding year. Notably, the total number of job cuts surpasses the previously reported 900 UK jobs.
This move is the latest phase of Barclays’ ongoing savings program, which has witnessed job reductions across its retail and investment banking segments. The bank has also announced the closure of nearly 200 branches in recent years, citing a shift towards digital transactions.
Barclays reported pre-tax profits of £1.9bn for the three months ending September, slightly exceeding analysts’ predictions but down from £2bn compared to the same period the previous year. This substantial workforce reduction, believed to be one of the largest cost-cutting measures undertaken by Barclays since the 2008 financial crisis, adds pressure on the bank as it approaches the publication of its full-year results for 2023 next month.