Barclays studies reducing client portfolio and layoffs

The British bank Barclays is studying a strong restructuring that could include the dismissal of some 2,000 workers in the administrative and technology sectors, as well as the elimination of 2,500 clients among the least profitable.

The drastic measure is aimed at reducing costs by one billion pounds and, in addition, increasing its profits, as was learned this Tuesday.

In this regard, the union is putting pressure on the bank to avoid these layoffs. The organization’s secretary, Sharon Graham, has described the layoffs as shameful and believes that the bank is only seeking to increase its profits.

Throughout this year, Barclays executives have met to discuss this restructuring plan, codenamed Minerva, and which responds to “the pressures on the entity and its CEO, Coimbatore Venkatakrishnan, to return more capital to its investors, which would imply reducing the weight of this division of the banking entity.”

Among the measures that the bank has also addressed is raising capital “to buy a wealth management business or undertake a drastic reduction of commercial assets at the investment bank of up to 25 %.”

In any case, if the drastic reduction of clients in the lower profitable sectors is applied, the entity could release 20,000 million pounds in risk-weighted assets.

M.Pino

Source: bolsamania

(Reference image source: Matthew LeJune, Unsplash)

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