LONDON - Barclays is set to implement a cost-cutting strategy that may result in up to 2,000 job cuts at its BX division. This move is part of a broader effort to save £1 billion and enhance shareholder value, as announced today. The decision comes in the wake of the bank's total staff costs increasing from £1.8 billion to £2 billion and a significant 26% drop in share price since November 2021.
The bank's CEO, C.S. Venkatakrishnan, is leading the initiative as Barclays looks to strengthen its position against European competitors like Deutsche Bank and UBS. The potential job cuts are a response to a surge in staffing levels at BX, which has grown to over a quarter of the bank's workforce since its establishment in late 2017.
Barclays had previously signaled a restructuring plan in October this year, ahead of an investor presentation scheduled for February next year. The ongoing comprehensive strategy review, conducted with Boston Consulting Group, is assessing investment priorities and potential divestitures. This review also follows the aftermath of a trading blunder and the exploration of payment business options that have been underway since July.
The strategic overhaul aims to address the challenges faced by Barclays and align its operations more closely with the bank's long-term objectives. Employees at BX are currently under a budget freeze as the bank prepares for the cost-cutting measures to take effect next year.
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