Barclays Plc may see its workforce shrink by about a fourth in coming years as the firm carries out existing programs to reduce costs, according to a person with knowledge of the projections.
The bank, which employed about 132,000 people at the end of December, is implementing job cuts announced in the past few years and further shrinking staff by automating operations. Those efforts could eventually leave it with fewer than 100,000 people, the person said. While it’s possible the firm may seek additional cuts, there’s currently no such plan beyond programs in motion, the person said, asking not to be identified because talks are private, Bloomberg reported.
Chairman John McFarlane ousted Chief Executive Officer Antony Jenkins this month, pledging to tackle a “cumbersome and bureaucratic” company–a move that left investors, employees and analysts trying to divine what additional steps he’ll take. Jenkins had eliminated thousands of jobs, set up a bad bank and sold assets to bolster earnings.
While McFarlane’s reputation for deep cost cuts at UK insurer Aviva Plc earned him the nickname “Mack the Knife,” he has signaled he will focus on boosting revenue at Barclays. During a townhall-style presentation this month, he said he aims to double the share price over the next three or four years, while possibly investing in some businesses, people who attended the meeting said last week.
“Cost is important,” McFarlane, 68, told Bloomberg Television on July 8. “But it’s actually about revenue and increasing revenue growth way over the cost of capital growth.”
The Times of London reported late Sunday that Barclays has a plan to cut more than 30,000 people within two years, leaving fewer than 100,000 staff by the end of 2017.
