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.
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In private meetings, Mr Jenkins had raised the possibility that those programmes and existing efforts to automate back-office functions may eventually leave the London-based bank with fewer than 100,000 employees, though probably not until the medium- or long-term, sources said.
Jenkins was ousted as the bank’s board said “a new set of skills” was needed to accelerate changes at Barclays, whose share performance has lagged that of major rivals. The bank is continuing to search for a permanent replacement.
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 earned him the nickname “Mack the Knife“, he has signaled he will focus on boosting revenue. He has called for more drastic moves to increase profitability and double Barclays’ share price.
Barclays plc (BCS,BARC.L) plans to cut more than 30,000 jobs within two years as the British lender considers accelerating a cost cutting program after firing chief executive Antony Jenkins in early July, the TImes reported on Sunday.
HSBC (HSBA.L) said in June that it planned to shed 50,000 jobs and shrink its investment bank by a third to combat sluggish growth.
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The Times report said the bank aims to reduce its global workforce to below 100,000 by the end of 2017 and is considered the only way to address the bank’s underperformance. But bank shareholders are reportedly disappointed that cost savings have not been delivered faster, particularly in comparison with banks such as Lloyds Banking Group and Royal Bank of Scotland. “As we bank more on mobile than in branches, the bulk of headcount reductions would fall on the retail side”.
