Barclays Bank logo is seen in this illustration taken March 12, 2023. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing Rights
NEW YORK, Oct 25 (Reuters) – Barclays Plc (BARC.L) is laying off dozens of staff in its U.S. consumer banking division as part of a global drive to cut costs, according to a source familiar with the situation.
The redundancies account for about 3% of employees in the bank’s U.S. consumer division, said the source, who declined to be identified discussing personnel matters. The staff were informed earlier this week, the person said.
“We review our business on a regular basis to ensure we are operating as effectively and efficiently as possible,” a spokesperson for Barclays said in a statement. “These decisions are never easy and employees whose roles have been impacted will receive a full range of transition services.”
Barclays on Tuesday said it would embark on a fresh round of restructuring in the coming months, as it looks to reduce costs and drive efficiencies across the bank in a bid to lift profits.
The bank’s shares nonetheless slid 6% on Tuesday as long-suffering investors in the British bank digested its downbeat outlook for its home market.
Chief Executive C.S. Venkatakrishnan said the lender will update investors on the areas impacted when Barclays reports full year results in February.
The bank is already drawing up plans to cut hundreds of jobs in its domestic retail bank and cut staff in its investment bank, Reuters reported last month.
Barclays’ consumer, cards and payments business, which houses the U.S. division impacted by the latest job cuts, has been a source of strength for the bank in recent quarters as growth in credit card balances from its $3.8 billion acquisition of retailer Gap Inc’s (GPS.N) portfolio lifted revenues.
The outlook for the business looks murkier now, however, with the bank warning on Tuesday that higher unemployment expectations in the U.S. could lead to customers missing payments.
Reporting by Lananh Nguyen in New York and Lawrence White in London; Editing by Chizu Nomiyama and Nick Zieminski
Our Standards: The Thomson Reuters Trust Principles.
