In a resolute bid to bolster its financial resilience and address investor concerns over its lagging performance compared to Wall Street counterparts, Barclays CEO C.S. Venkatakrishnan has initiated a comprehensive strategy review. This strategic undertaking coincides with reports indicating the bank’s contemplation of significant job cuts, potentially numbering in the hundreds, according to sources privy to the matter.
Among the areas under scrutiny, Barclays may wield the pruning shears most notably in its domestic retail division, where an estimated 400 positions hang in the balance. However, it’s imperative to note that these figures remain subject to refinement.
Simultaneously, within the hallowed halls of the investment banking domain, Barclays intends to execute cuts that form part of its annual evaluation of banker performance. These measures, it is emphasized, are unrelated to the aforementioned retail sector workforce adjustments. Additionally, the bank is mulling options for the potential redeployment of certain retail staff or the offer of voluntary redundancy.
A spokesperson for Barclays, when pressed for details, offered the customary refrain, stating, “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.”
Earlier, on September 8, Bloomberg had alluded to the looming specter of extensive job losses within the bank.
Barclays’ strategic introspection and cost-cutting endeavors align with the broader industry trend, as its Wall Street counterparts have also wielded the scalpel to mitigate financial challenges. Morgan Stanley, for instance, wielded the axe to eliminate 3,000 positions in the second quarter, while Goldman Sachs, in a parallel course of action, reinstated performance assessments that historically culminate in the dismissal of underperforming personnel. Citigroup, in a similar vein, announced the axing of 1,600 jobs during the second quarter.
The backdrop to these measures lies in the prolonged convalescence of investment banking revenues, which have been sluggish to recover.
As Barclays embarks on this pivotal journey of introspection and reconfiguration, the financial world remains watchful, eager to discern the ultimate outcome of these multifaceted endeavors.
By Reuters
