Barclays PLC is reportedly planning to cut up to 2,000 jobs in order to save costs and boost its profitability. The British bank aims to reduce headcount mainly at Barclays Execution Services as part of its overall target of reducing expenses by up to £1 billion ($1.25 billion) across the group over the next few years.
The cost-saving target represents approximately 7% of the bank’s underlying annual operating expenses, which amounted to £15 billion in 2022. This move comes as Barclays seeks to streamline its operations and improve its financial performance.
In recent years, Barclays has made efforts to reduce expenses by lowering bonuses and cutting jobs in its retail and investment banking businesses. These cost-cutting measures have been implemented to enhance the bank’s efficiency and profitability.
Barclays Execution Services currently has a workforce of 22,300, accounting for more than a quarter of Barclays’ total employee count. The division’s staff costs stand at around £2 billion, according to the report. By reducing headcount in this division, Barclays aims to optimize its operations and allocate resources more effectively.
Last month, Barclays reported that its total income in the third quarter grew by 5% year-over-year to £6.26 billion, with earnings per share of 8.3p compared to 9.4p in the same period last year. Despite this growth, the bank is still exploring opportunities to reduce structural costs and expects potential material charges in the fourth quarter of the fiscal year 2023.
Barclays’ shares closed lower by 0.84% at $7.07 on Wednesday. The bank’s management is focused on implementing cost-saving measures to improve its financial performance and deliver value to shareholders.
In conclusion, Barclays PLC is planning to trim its workforce by as many as 2,000 jobs in order to save costs and boost profitability. This move is part of the bank’s broader efforts to reduce expenses and streamline its operations. By optimizing resources and reducing headcount, Barclays aims to enhance efficiency and improve its financial performance in the long run.
