The British lender Barclays announced Tuesday that it would be cutting up to 12,000 jobs this year, about 8% of its workforce. This overhaul is 12 months into their program initiated by CEO Antony Jenkins to repair the bank’s finances and restore its reputation following a series of scandals. The bank currently has 140,000 employees and is a top lender throughout the world. As part of its restructuring, they have already cut about 7,650 jobs and they will continue to cut as many as 12,000 more this year. This will include about 7,000 jobs in Britain, Barclay’s home market.
The news comes directly after Barclays posted their fourth quarter earnings which was a steep loss of £514 million. This huge loss was driven by restructuring costs, an increased levy by the British government, and a £364 million charge for litigation and regulation penalties. However, CEO Jenkins is determined that “despite challenging conditions, [Barclays’] underlying performance has been resilient and momentum is building.” The bank’s executives argue that Barclays is continuing to grow and will move past these losses. As of now, the bank is still one of the largest in the world with operations in over 50 countries and territories. Although they are being criticized for cutting jobs and increasing bonuses for many top executives, it is likely that they will continue as one of the top banks.
Source: New York Times
