As part of an international effort to reduce expenses, Barclays Plc (BARC.L) is letting go of dozens of employees in its U.S. consumer banking division, according to a source with knowledge of the matter.
About 3% of the bank’s U.S. consumer division staff are laid off, according to a source who asked not to be named because they were discussing personnel issues. The individual stated that early this week, the staff was notified.
A Barclays representative stated in a statement, “We review our business on a regular basis to ensure we are operating as effectively and efficiently as possible.” “These decisions are never easy, and employees whose roles have been impacted will receive a full range of transition services.”To increase earnings, Barclays said on Tuesday that it would start a new wave of restructuring in the next months. The bank wants to cut expenses and improve efficiency around the board.
Nevertheless, the British bank’s shares fell 6% on Tuesday as its pessimistic view of its domestic market was taken in by long-suffering investors.
When Barclays releases its full-year results in February, Chief Executive C.S. Venkatakrishnan said the firm will provide investors with an update on the sectors affected. According to Reuters last month, the bank is already formulating plans to reduce workers in both its investment bank and hundreds of jobs in its domestic retail bank.
The U.S. division of Barclays, which is home to the most recent job layoffs, is housed under the consumer, cards, and payments sector. Growth in credit card balances from the bank’s $3.8 billion acquisition of retailer Gap Inc. (GPS.N) portfolio has bolstered revenues in recent quarters, providing stability for the bank.
The bank issued a warning on Tuesday that greater unemployment projections in the U.S. might result in clients skipping payments, clouding the future of the company.
