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Pin to quick picksBarclays Share News (BARC)

Share Price Information for Barclays (BARC)

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Share Price: 216.75
Bid: 216.10
Ask: 216.15
Change: 1.85 (0.86%)
Spread: 0.05 (0.023%)
Open: 214.55
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Low: 214.55
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UPDATE 1-Barclays has not set new target for job cuts -sources

Mon, 20th Jul 2015 08:15

* No new target beyond plan for 19,000 cuts

* Newspaper reported bank could cut 30,000 positions

* New technology could drive headcount reduction -sources (Recasts, adds details on strategy from sources)

By Matt Scuffham

July 19 (Reuters) - Barclays has set no new targetsto cut jobs beyond the 19,000 redundancies which it announced inMay last year, sources familiar with the matter said on Monday,playing down a report of further reductions.

The Times newspaper reported that the bank was planning tocut more than 30,000 of its staff within two years as itconsiders accelerating a cost-cutting programme following thedeparture of Chief Executive Antony Jenkins.

The Times reported that further job cuts may reduceBarclay's global workforce to below 100,000 by the end of 2017and is considered the only way to address the bank'sunderperformance and hit a target to double its share price.

Jenkins said in May 2014 that the bank would cut 19,000 jobsover the next three years, 7,000 of which would be at Barclays'investment bank.

Since then, Barclays' share price has continued to lagrivals and Jenkins was fired this month with the bank sayingthat new leadership was required to accelerate changes at thebank.

Jenkins' successor will be expected to cut costs morequickly to achieve better returns and that could mean moreaggressive cuts to the bank's 132,000 workforce.

One source said it was possible that thousands more jobs atthe bank could go in the longer term as new technology enablesit to automate some functions within its retail bank.

Cuts are also likely to come in middle and back officeoperations.

Chairman John McFarlane this month assumed the day-to-dayrunning of the bank until a successor is appointed, workingparticularly closely with Finance Director Tushar Morzaria.

The move echoed McFarlane's actions at insurer Aviva,where he took over the full-time running of the insurer in May2012 having delivered a critical assessment of Chief ExecutiveAndrew Moss's five years in charge.

Shares in Barclays, which were unchanged at 0730 GMT,currently trade at 0.8 times the value of the bank's assets,below rivals in Britain and Europe.

Banks are cutting jobs as bosses strive to improveprofitability that has been hurt by tougher regulation.

HSBC said in June that it planned to shed 50,000jobs and shrink its investment bank by a third to combatsluggish growth.

European rivals including RBS, UBS andDeutsche Bank have axed thousands of jobs, but manyare facing fresh calls for more radical cuts in investmentbanking.

(Additional reporting by Rishika Sadam in Bengaluru; editing byJason Neely)

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Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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