Thursday, August 4, 2011

British bank Barclays to cut 3,000 jobs

Source: Press TV

The British bank Barclays has announced plan to cut 3,000 jobs this year to reduce costs on top of 1,400 job cuts during the first half, media reports said.

Chief Executive Bob Diamond said Barclays had cut 1,400 jobs during the first half and the tally was likely to rise to about 3,000 by the end of the year.

"We haven't set specific headcount numbers, but I would expect the trend in the first half to continue and I think it would be likely to increase," Diamond said.

The staff cuts amount to about 2 percent of Barclays' total workforce of 146,100.

The warning followed the bank's announcement of a 33 percent drop in profits to £2.6 billion after it took a £1billion hit to cover compensation for customers who were mis-sold payment protection insurance.

"Unite is astounded that Bob Diamond would make these remarks regarding future job losses. It is not encouraging for his workforce to hear such throwaway comments from their boss about their future job security”, said Unite union officer Andy Case.

"Unite will be seeking clarification from Barclays and insisting that the management reassure their workforce, who continue to work hard to deliver the highest levels of standards to the customers of the bank", said Andy Case.

"It's better on costs and impairments, and within the revenue line BarCap had a relatively strong quarter compared to its peer group," said Mike Trippitt, analyst at Oriel Securities. "It has been a savage market out there."

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