Barclays headcount fell by 5,000 last year in cost-cutting push

BARCLAYS said its global headcount dropped by about 6 per cent over 2023, the most visible sign yet of the bank’s cost-cutting push.

The lender said that it had “removed approximately 5,000 headcounts globally to 2023 as part of its ongoing efficiency programme”. The majority of those affected are within the group’s support functions, reflecting the removal of management layers and improved technology and automation capabilities, according to the statement.

The bank had an average of 83,928 employees globally in 2022, according to a company filing, a figure that has been broadly stable for years. The overall fall – first reported by Sky News – reflects previously reported redundancies as well as attrition.

Chief executive officer CS Venkatakrishnan is struggling to revive the bank’s stock, which has lagged behind peers and fallen by a tenth in the last 12 months. In the United Kingdom, the tailwind from higher interest rates is slowing while Barclays’ traders and investment bankers have struggled to keep pace with rivals on Wall Street.

Management tapped Boston Consulting Group last year for a wide-ranging review of the firm’s strategy. The bank said in October that it is “evaluating actions to reduce structural costs to help drive future returns, which may result in material additional charges” in the fourth quarter. It said it would also provide an investor update alongside full-year results in February, when it is expected to unveil a fresh strategy.

Despite the cuts, the bank is still adding staff in some areas. Barclays said it continues to “selectively hire front office roles in key businesses”. BLOOMBERG