The London-headquartered Barclays is engaged on plans to slash prices by as a lot as £1 billion ($1.25 billion) which might together with reducing 2,000 jobs, Reuters reported Thursday, citing individuals with information of the matter.
The cuts would concentrate on again workplace roles at Barclays Execution Services, the outlet reported. The proposal, geared toward boosting the financial institution’s profitability and curb bills, is nonetheless being reviewed by high administration together with CEO C.S. Venkatakrishnan or “Venkat.”
It’s unclear which different departments is likely to be impacted or what the general time-frame for the doable layoffs is.
A consultant at Barclays declined Fortune‘s request for remark.
Barclays has been making an attempt to put a lid on prices together with by cutting bonuses earlier this yr. In its third-quarter earnings report, the financial institution hinted at restructuring plans, saying it was “evaluating actions to reduce structural costs to help drive future returns,” which can replicate materials extra costs within the fourth quarter.
The firm reported pre-tax revenue for the third quarter barely beneath the identical interval a yr earlier, with a 6% drop in its core funding banking section amid decrease deal volumes. Revenue on the firm’s mounted revenue, foreign money and commodities buying and selling division declined 13% due to market volatility.
Barclays is anticipated to focus on its technique for the next yr when it proclaims its full-year ends in February, in accordance to Reuters.
A rocky 2022 for Barclays
The lender has had different challenges to navigate—together with the fallout of a buying and selling error that resulted in several billion dollars being by chance issued in structured monetary merchandise with out authorization. Barclays had to settle with the U.S. Securities and Exchange Commission for $361 million, whereas setting apart about $565 million to compensate buyers, in accordance to the Financial Times.
Separately, the financial institution confronted $200 million is prices for a U.S. regulatory probe involving worker use of private messaging apps such as Whatsapp to focus on doubtlessly market-sensitive issues.
Since Venkat took over in November 2021, the corporate’s shares have fallen 26%, whereas these of its rivals like HSBC have shot up by 37%.
Barclays started a technique assessment earlier this yr to save its sliding share worth. Pressure on the financial institution continues to mount as it tackles varied cost- and economy-related challenges.
“Reports Barclays is targeting £1 billion in cost cuts reflect the challenges facing the banking sector, despite higher interest rates, as inflationary pressures continue to weigh,” AJ Bell funding director Russ Mould mentioned in a observe Friday.
“It also suggests CS Venkatakrishnan is starting to feel some pressure with the shares appreciably lower since his appointment in November 2021.”