Barclays could axe 2,000 jobs in $1.3B cost saving, says Reuters

Barclays Plc is working on plans to reduce costs by as much as £1 billion ($1.3 billion) over several years, which could involve slashing as many as 2,000 jobs, according to Reuters.

Any cuts would be primarily at Barclays Execution Services, the unit that encompasses the group’s back office, Reuters said, citing a person it didn’t name. The moves to boost profitability could see 1,500 to 2,000 jobs shed if implemented in full, or about 2% of the bank’s workforce.

The proposals are being reviewed by top managers including Chief Executive Officer C.S. Venkatakrishnan, Reuters said, noting discussions are ongoing and the lender could ultimately prioritize layoffs in other areas. Barclays had total operating expenses of £16.7 billion last year.

A spokesperson for Barclays declined to comment.

The bank said last month that it’s “evaluating actions to reduce structural costs to help drive future returns, which may result in material additional charges” in the fourth quarter. It said it would also provide an investor update alongside full-year results in February, where it is expected to unveil a fresh strategy.

Barclays shares are down 11.5% this year. Earlier this year, Venkatakrishnan turned to strategy advisers to hash out a plan to boost the bank’s lagging share price. 

The lender reported disappointing third-quarter earnings last month that prompted a fresh slide in the bank’s share price. In the UK, the tailwind from higher interest rates is slowing while Barclays’ traders couldn’t keep pace with US peers. 

Barclays Execution Services Ltd., or BX, had 22,334 full-time staff at the end of 2022, according to a UK regulatory filing. It provides technology, operations and functional services to businesses across the group, according to its website.