About 500 Siemens staff could
lose their jobs after
Barclays decided not to renew a contract providing back-office
processes.
The contract, which supplies services to Barclays from Glasgow,
Beeston and India, employees 518 full-time staff and 350 temporary
staff.
The four-year contract was signed in 2000. It was renewed in
early 2006 and again in late 2006. The existing contract will
expire on 30 September.
Barclays could retain staff for a year as the work is
transferred, but once the work is integrated back into Barclays,
Siemens said, "redundancies are unfortunately inevitable".
A Barclays spokeswoman said, "We have been in ongoing
discussions with
Siemens regarding their contract which ends this year and have
decided not to renew this.
"As we have not yet reached an agreement with
Siemens on the detail of how we will manage the exit of the
contract, it is too early to confirm how we will integrate this
work back into Barclays. However, at this stage we do not plan on
continuing to base the current activity at the Glasgow and Beeston
sites in the future.
"Staff have been advised that once the activity is integrated
back into Barclays, their roles will become redundant."
A Siemens spokesman said it is working with the Public and
Commercial Services Union to support the staff affected. The
company added, "Whatever the outcome, redundancies are
unfortunately inevitable though we hope to achieve these on a
voluntary basis and would always look for redeployment
opportunities for our staff where appropriate".