Barclays plans to trim 900 jobs in the UK as part of a cost-cutting initiative, according to the trade union Unite.
The union criticized the move as “disgraceful,” especially considering the timing just before Christmas, and suggested that the decision would contribute to the bank’s already “massive profits.”
The job cuts are expected to affect various back-office departments, including compliance, finance, legal, policy, IT, and risk, as reported by Unite.
While Barclays hasn’t officially disclosed the exact number of job cuts, the bank stated that it is taking steps to “simplify the business.”
On Tuesday, affected employees received the news during lunchtime, as reported by Unite.
The union is urging Barclays to steer clear of mandatory layoffs and instead consider relocating staff within the affected areas of the business.
Unite shared that it has negotiated better compensation and support for impacted workers, even for those with less than two years of service.
However, a Barclays spokesperson countered this, noting that the job cuts had been previously outlined in the bank’s third-quarter results in October. Barclays’ CEO, CS Venkatakrishnan, mentioned back then that the bank identified “further opportunities to enhance returns for shareholders through cost efficiencies and disciplined capital allocation across the group.”
Confirming the changes on Tuesday, a spokesperson for the bank explained that adjustments were being made to the workforce as part of a reduction in management layers and an enhancement of the group’s technology and automation capabilities.
“We are fully committed to providing support for our colleagues who are affected by these changes,” a spokesperson for Barclays stated.
However, Unite’s general secretary, Sharon Graham, expressed strong disapproval, saying, “Barclays is shamefully cutting jobs to further boost its massive profits. This is a highly profitable bank that is already on track to make staggering profits this year.”
In the three months leading up to September, the bank reported pre-tax profits of £1.9 billion, slightly surpassing analysts’ expectations but lower than the £2 billion reported a year ago.
Barclays has been actively reducing costs over the past few years, with job cuts occurring in both its retail and investment banking sectors. Additionally, the bank has announced the closure of nearly 200 branches in recent years, citing a shift toward fewer face-to-face transactions, which now make up only 10% of total transactions.
As of the end of the previous year, the group had approximately 22,300 staff members.
These job cuts coincide with reports suggesting that another major high street bank, Lloyds, may be considering up to 2,500 job cuts. According to the Guardian, the bank is reportedly initiating consultations with staff in various roles, including analysts and product managers, as part of a broader restructuring effort.
