Soon after Lloyds Banking Group announced it is to cut over 1000 jobs, Barclays has followed suit.
Lloyds announced on Tuesday that it was to cut 1,080 jobs, and outsource some 310 roles, as part of the ongoing overhaul of the business; this brings the total number of job losses within the 33% state-owned bank to around 35,000 since 2008.
Today, Barclays has revealed that it is to cut up to 400 jobs in its investment banking division as part of its business reform. The bank employs around 140,000 people worldwide, but this comes discouragingly soon after the 3,700 cuts seen last year. The cuts are likely to be predominantly senior managers in both London and New York.
Falling revenues and tougher regulations have been blamed for the cuts. Reports have also been filtering through that the bank plans to shut some branches due to the increasing use of online facilities. It also plans to move some of its branches into supermarkets – something that is common in America.
The cuts in Lloyds bank, meanwhile, will affect the risk, operations, retail and commercial banking divisions with the losses said to be part of the "strategic review" first announced in 2011. However, the group has confirmed that it will work through these changes "in a careful and sensitive way" and it hopes that a number of the job losses will be achieved through natural turnover, with voluntary redundancy the next step and compulsory cuts the last resort.
Many banks have seen restructuring plans recently, as economic struggles and tougher regulations have hit profits. Another state-owned bank, Royal Bank of Scotland, will announce its cost-cutting programme next month, so there are fears that further cuts could be on the way.
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