UK-based bank holding company Barclays confirmed that it is in the process of cutting thousands of jobs worldwide, as part of its strategy to reduce its costs and improve profitability.
According to the Sky News report, Barclays has axed around 5,000 jobs from its global workforce of 84,000, last year.
Most of the job cuts were in Barclays Execution Services (BX), the bank’s support unit.
The job cuts were executed through a combination of redundancies and vacancies that were not filled after a hiring freeze in the middle of last year.
The redundancies are part of a programme and are already in progress, but not publicly announced by the bank, reported Sky News.
The job cuts represent Barclays’ most significant cost-cutting plans since the 2008 financial crisis.
Barclays spokesperson told Sky News: “Barclays removed approximately 5,000 headcounts globally through 2023 as part of its ongoing efficiency programme designed to simplify and reshape the business, improve service, and deliver higher returns. The group is also creating capacity to selectively hire front office roles in key businesses.”
In September last year, Barclays was reported as planning to cut more than 450 employees, according to Unite, a trade union representing employees at Barclays.
Unite said that the bank’s decision was ‘unnecessary and unjustified’ and would affect the job security and livelihoods of the workers.
The trade union questioned that, despite being a profitable finance organisation, how could Barclays lay off more than 450 employees amid a cost-of-living crisis.
In November, Barclays was reported as laying off as many as 2,000 employees as part of a cost-cutting initiative aimed at saving up to £1bn.
Reuters reported that the job cuts are likely to be undertaken primarily in the bank’s back office, citing an undisclosed source familiar with the plans.
Barclays would axe around 1,500 to 2,000 jobs to enhance its profitability, said the publication.
