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Barclays Plans Job Cuts Amid Market Challenges

Sep 9, 2023

By: BlinkX Research Team

Barclays Plc is set to reduce its workforce by hundreds of employees in a cost-cutting move amid quieter markets, with the cuts expected to commence as early as next week, according to sources familiar with the matter.

The bank is targeting approximately 5% of client-facing staff in its trading division for layoffs, along with certain dealmakers globally. Additionally, Barclays is preparing to restructure teams within its UK consumer banking unit as part of its cost-saving strategy.

CEO C.S. Venkatakrishnan faces mounting pressure to enhance profits and bolster the bank's share price. In line with this objective, he has pledged to trim expenses across the organization and has initiated a comprehensive review of the bank's strategy.

These staff reductions are part of Barclays' annual process to weed out underperformers in its markets division and corporate and investment bank. Notably, Goldman Sachs Group Inc. is also planning similar annual cuts, likely to commence next month.

Barclays, along with its peers, is grappling with a slowdown in trading revenue compared to the previous year, largely attributed to the reduced market volatility following Russia's invasion of Ukraine.

Despite the impending job cuts, the bank has made significant hiring efforts, bringing on board over 60 managing directors and directors in the market division since the year's outset. This surge in hiring reflects the bank's commitment to maintaining a robust workforce.

Barclays has also addressed the elevated attrition rate among its dealmakers by hiring more than 30 managing directors and directors across the banking division. These strategic moves aim to position the bank for continued competitiveness and success in a challenging market environment.