Barclays Plc (BARC.L) is reportedly gearing up for a significant reduction in its workforce, spanning its trading and investment bank divisions, as part of a broader strategic overhaul, according to sources cited by Bloomberg News. The British lending institution is said to be contemplating the elimination of approximately 5% of client-facing staff within its trading division, including some dealmakers on a global scale. Additionally, restructuring efforts are on the horizon for teams within its UK consumer-banking unit.
Reuters also posted that Barclays is in the process of devising plans to trim its workforce, which could affect hundreds of jobs. In particular, the bank is eyeing potential cuts of up to 400 positions within its domestic retail business, although these numbers are subject to change. The reductions within the investment banking sector are described as part of routine evaluations of banker performance, and the two rounds of cuts are reportedly unrelated. Some retail staff may have the option to be redeployed or take voluntary redundancy.
In response to inquiries about these reported actions, a Barclays spokesperson stated, “We do not comment on speculation. We regularly review our operations to ensure we meet the evolving needs of our customers and clients in an efficient and effective way.”
This news comes as Barclays CEO C.S. Venkatakrishnan embarks on a broader strategy review, in response to investor concerns regarding the bank’s underperformance relative to Wall Street investment banks. Barclays’ decision to reduce its workforce aligns with similar actions taken by its Wall Street competitors this year. Morgan Stanley (MS.N) cut 3,000 jobs in the second quarter, Goldman Sachs (GS.N) reinstated performance ratings that could lead to the termination of underperforming employees, and Citigroup (C.N) announced the elimination of 1,600 jobs in the second quarter.
The move reflects the ongoing challenges in the investment banking industry, where revenues have been slow to rebound.
