According to a source close to the issue, Barclays Plc will be laying off hundreds of employees from their consumer banking sector in the United States as part of a global cost-cutting exercise.
According to a source, the redundancies have affected around 3% of the bank’s U.S. consumer division. The team was then notified early this week.
According to a Barclays spokesperson, they monitor their business on a regular basis. This is to ensure that the process runs as smoothly and efficiently as possible. “These decisions are never easy and employees whose roles have been impacted will receive a full range of transition services.”
Barclays said on Tuesday that they would begin a new phase of restructuring in the coming months in order to cut costs and increase efficiency across the board as to raise profitability.
Nonetheless, the bank’s shares dropped to 6% on Tuesday after long-suffering British bank investors digested the company’s unpleasant prediction for its home market.
When Barclays announces full-year earnings in February, Chief Executive C.S. Venkatakrishnan said the firm will inform investors on the sectors impacted.
The bank is already planning to slash hundreds of positions in its domestic retail bank and hundreds of employees in its investment bank.
Barclays’ consumer, cards, and payments business, which houses the afflicted U.S. division, has been a source of strength for the bank in recent quarters as credit card balance growth from its $3.8 billion acquisition of retailer Gap Inc’s portfolio bolstered revenues.
Therefore, the business picture is even bleaker, with the bank warning on Tuesday that increased unemployment projections in the United States might lead to clients skipping payments.
