IT cuts expected as FirstPlus closes to new business

Barclays is expected to shed IT jobs, after announcing that it will no longer offer new loans through its FirstPlus loans business.

Barclays plans to cut three quarters of the overall staff, but it has not specified which departments will face the axe. FirstPlus will keep its IT infrastructure to process existing customer loans, but it is expected to scale back its use.

"We have closed to new business, but the units will remain to process existing loans," said a spokesman.

The business, which employs 420 people, runs a combined customer contact centre and loan processing operation in Cardiff, which has dedicated IT staff on site. The company has about 128,000 existing customers.

Peter Redshaw, analyst at Gartner, said IT departments in businesses such as FirstPlus, which are heavily dependent of IT, will be hit hardest as banks cut costs amid the current economic turmoil.

"These businesses are easier to scale back in and proportionally the impact on IT is greater than cuts made in branches."