Business

IIE Digital Desk: Barclays, in an effort to streamline operations and bolster profitability, revealed that it has slashed approximately 5,000 jobs globally throughout 2023 as part of its ongoing restructuring strategy. This move is a pivotal component of the bank's initiative to simplify its business model, enhance services, and drive higher returns.

The bank confirmed that the majority of these workforce reductions were concentrated within Barclays Execution Services (BX), its support unit.

A spokesperson for Barclays articulated the rationale behind the reduction, emphasizing its alignment with the institution's efficiency program. The overarching goal is to reshape the company and optimize its structure to achieve better operational efficiency, reported Reuters.

This strategic overhaul stems from Chief Executive C.S. Venkatakrishnan's plan unveiled last year, strategically aimed at implementing substantial structural cost actions. The announcement is anticipated to precede an upcoming presentation to investors scheduled for February, coinciding with the bank's annual results.

While Barclays had previously outlined its intentions to implement cost-cutting measures, the detailed extent of the workforce reduction was clarified in response to a Sky News story. The recent statement from the bank elucidated the magnitude of the efforts undertaken thus far.

Additionally, Barclays disclosed that it has trimmed roles within its UK chief operating officer function, contributing to the broader workforce reduction initiatives.

These comprehensive restructuring endeavours signify Barclays' commitment to fortifying its financial footing and adapting to the evolving economic landscape. As the banking sector continues to navigate challenges and transformations, Barclays aims to position itself strategically through these significant operational adjustments.