Barclays to sack 12,000 people to save money

Barclays_1315929Great news for shareholders, not such great news for the 12,000 employees who face losing their jobs in the near future. We are eight years into the credit crunch crisis and still the banking industry is in turmoil.

The latest challenge is that of PPI – banks are setting aside increasing large sums to pay back borrowers money for insurance schemes that they never really wanted.

Barclays employs 140,000 around the world. It has also recently announced that it will be increasing bonuses this year, more good news for the staff that remain in work. Barclays’ bonus pot has risen to £2.38 billion, an increase of 13 per cent of the last year.

CEO Antony Jenkins spoke on  Radio 4’s Today program this morning: “At Barclays, we believe in paying for performance and paying competitively.”

Barclays shed 7,650 jobs last year, so by the end of 2014 almost 20,000 bankers will be out of work.

Profits down

Profits are down, pre-tax profits have fallen to £5.2 billion. Restructuring costs have run deep over the past year.

The “Go To” Bank

Barclays is the third largest bank in the UK and Antony Jenkins is keen to keep driving the company forwards and to shake off the LIBOR scandel which clouded the end of Bob Diamond’s watch as company CEO.

Jenckins wants to see Barclays become the “go to” bank for the common people in the UK. He admits that there is still a lot of work to be done.

Source: http://www.bbc.co.uk/news/business-26131799

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