Barclays Initiates Job Cuts in US Consumer Banking Division Amid Global Cost-Cutting Drive

Barclays takes steps to streamline operations, affecting 3% of the US consumer banking workforce. Find out the latest cost-cutting measures.

Oct 25, 2023 - 09:41
Oct 25, 2023 - 09:47
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Barclays Initiates Job Cuts in US Consumer Banking Division Amid Global Cost-Cutting Drive
Barclays Initiates Job Cuts in US Consumer Banking Division Amid Global Cost-Cutting Drive

Barclays is set to reduce its workforce in the U.S. consumer banking division, marking a strategic move in its global cost-saving campaign. This adjustment will affect approximately 3% of employees within the division, as confirmed by a reliable source. Affected staff members were notified earlier this week. Barclays emphasized that such decisions are always challenging and assured impacted employees of comprehensive transition support.

In response to the restructuring announcement, Barclays stated, "We review our business on a regular basis to ensure we are operating as effectively and efficiently as possible." This move comes as part of a broader initiative to enhance operational efficiency and ultimately bolster profits.

Despite this strategy, Barclays witnessed a 6% decline in its shares on Tuesday, following a somber assessment of its performance in the home market. Chief Executive C.S. Venkatakrishnan assured that specific details on affected areas will be provided when Barclays discloses its full-year results in February.

The bank is already in the process of devising plans to trim positions in its domestic retail bank and streamline its investment banking operations, as reported by Reuters last month.

Barclays' consumer, cards, and payments business, which includes the impacted U.S. division, has been a pivotal revenue driver, especially due to growth in credit card balances resulting from its acquisition of retailer Gap Inc.'s portfolio. However, the future of this business segment is now uncertain, as the bank cautioned about the potential impact of higher U.S. unemployment rates on customer payment behavior.

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