In a bid to enhance efficiency and slash expenses, Barclays has reportedly eliminated about 5,000 positions globally in 2023. This reduction, which began in late 2022, represents approximately 5% of the bank’s current total workforce.
The job reductions are believed to be a mix of direct layoffs and unfilled open positions. Detailed information about these cuts is expected to be disclosed in the bank’s financial results announcement on February 20. This cost-saving measure is projected to save about £1 billion (€1.16 billion).
A spokesperson for the investment bank highlighted that Barclays was doing this as “part of its ongoing efficiency program designed to simplify and reshape the business, improve service, and deliver higher returns.”
The restructuring primarily affected the chief operating officer function of Barclays UK and the Barclays Execution Services (BX) as the organization aims to streamline its leadership structure.
Barclays has faced ongoing challenges with its investment banking division, even leading to rumors of the bank potentially dropping thousands of investment banking clients. Such a move is anticipated to free up capital for more lucrative opportunities.
In recent years, the group has also been embroiled in several scandals involving former CEOs. Notably, Jes Staley, who served as the bank‘s CEO for six years, came under scrutiny for his ties with convicted sex offender Jeffrey Epstein.
This controversy sparked a prolonged dispute with City regulators, culminating in Staley’s resignation in November 2021.
In October, the UK Financial Conduct Authority imposed a ban on Staley from holding any senior role in the City and fined him £1.8 million for failing to disclose the full extent of his relationship with Epstein.
