Barclays to lay off dozens of US consumer bank employees
BARCLAYS is laying off dozens of staff in its US consumer banking division as part of a global drive to cut costs, according to a source familiar with the situation.
The redundancies account for about 3 per cent of employees in the bank’s US consumer division, said the source, who declined to be identified discussing personnel matters. The staff were informed earlier this week, the person said.
“We review our business on a regular basis to ensure we are operating as effectively and efficiently as possible,” a spokesperson for Barclays said in a statement. “These decisions are never easy and employees whose roles have been impacted will receive a full range of transition services.”
Barclays on Tuesday said it would embark on a fresh round of restructuring in the coming months, as it looks to reduce costs and drive efficiencies across the bank in a bid to lift profits.
The bank’s shares nonetheless slid 6 per cent on Tuesday as long-suffering investors in the British bank digested its downbeat outlook for its home market.
Chief executive CS Venkatakrishnan said the lender will update investors on the areas impacted when Barclays reports full year results in February.
The bank is already drawing up plans to cut hundreds of jobs in its domestic retail bank and cut staff in its investment bank, Reuters reported last month
Barclays’ consumer, cards and payments business, which houses the US division impacted by the latest job cuts, has been a source of strength for the bank in recent quarters as growth in credit card balances from its US$3.8 billion acquisition of retailer Gap’s portfolio lifted revenues.
The outlook for the business looks murkier now, however, with the bank warning on Tuesday that higher unemployment expectations in the US could lead to customers missing payments. REUTERS
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