British lender Barclays will be cutting back on the number of staff that it employees. It is also said that the company will cut back on the amount its employees spend on travel. This includes the cost of air travel and the amount of cars the company hires for its employees to get around.
An insider source at Barclays says that the company is planning on cutting hundreds of jobs from its investment banking division. This will be part of the company’s ongoing goal of reforming its entire business. Although the source was not able to give the exact number of jobs that will be cut, the person said that the number will be in the low hundreds.
It is not clear yet when these cuts will be made, but it is believed that they will happen within the next few weeks at the latest. During this time, Barclays will also be restricting how much its employees are allowed to spend on travel to meetings. The company will be watching how many cars its employees rent, and it believes that by cutting back on travel, it can continue to slim down its yearly costs.
Antony Jenkins, the chief executive of Barclays, said just last year that his company was going to take a new fresh path. His goal is to bring the bank back to its former glory. The pride and reputation of the bank was hurt when a series of scandals broke in the news a few years back.
In February 2013, Jenkins made it clear that his company would be cutting jobs under his new plan. At the time, he said that he planned to cut around 1,800 jobs at the corporate office. The company will cut another 1,900 jobs at different European banking locations. That being said, these latest cuts announced by an unnamed source are supposedly on top of the cuts that Jenkins talked about last year. This leads people to believe that Barclays has yet to reach the savings that it hopes to achieve.
In total, Barclays still employees around 140,000 people at all of its locations. That being said, this is still a lot of jobs for any company to cut over the course of a year. It is also shocking to see that the company is continuing to cut jobs over the next few weeks. Experts in the banking industry suggest that this is not helping its image at all. Although it may be saving money by cutting jobs, it just tells consumers that Barclays is still in trouble.
The people who do not get cut are not living the high life by any means. Barclays has already announced that it has cut pay for all of the investment bankers that are left. It has also halted a lot of trading. This is all part of the big reform that Jenkins spoke of a year ago.
It may not be shocking to find out that Barclays has declined to comment on these new rumors that more jobs are being cut. Next month, the company is going to report its full-year earnings.