Since then, Barclays’ share price has continued to lag rivals and Jenkins was fired this month with the bank saying that new leadership was required to accelerate changes at the bank.
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Barclays had earlier, in May a year ago, projected redundancies of around 19,000 (See: Barclays “bloodbath”: 19,000 jobs cut, hundreds of branches to shut), but it was widely expected that job cuts by the British banking and financial services major would limit job cuts to within 20,000 employees. The efforts are part of a large-scale reorganization headed by Chairman John McFarlane, who has pledged to tackle the “cumbersome and bureaucratic” company, Bloomberg reported, citing an unnamed source.
Barclays rose 0.4 percent to 281.25 pence at 9:49 a.m.in London.
While McFarlane’s reputation for deep cost cuts at United Kingdom insurer Aviva PLC earned him the nickname “Mack the Knife“, he has signaled he will focus on boosting revenue at Barclays.
Barclays’ (LON:BARC) share price headed south this morning, after The Sunday Times reported that the bank planned to cut more than 30,000 jobs within two years in a bid to improve the bank’s general performance.
Barclays PLC may see its workforce shrink by about a fourth in coming years as the firm carries out existing programs to reduce costs, according to a person with knowledge of the projections. “But it’s actually about revenue and increasing revenue growth way over the cost of capital growth”.
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The report said Barclays is planning to limit its global workforce to below 100,000 by the end of 2017 and that further job cuts are being considered as the only way to address the bank’s underperformance. The bank employs significantly more people than Lloyds and RBS, with have 95,088 and 89,700 on their books respectively according to the report. “However there’s also a significant opportunity for cost reductions in the investment bank”.
