Barclays bank is cutting 7,000 jobs in the UK as part of a reduction of up to 12,000 jobs globally this year.
The bank announced between 10,000 and 12,000 cuts globally this year, with 7,000 to be axed in the UK
Barclays, which announced profit of £5.2b for 2013, would not go into more detail about where cuts will be made. However, IT has been hit hard by recent job cuts.
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According to a Computer Weekly source, Barclays is planning to reduce VP level staff in its Global Technology Infrastructure Services(GTIS) by cutting heads in London and Knutsford, with more functions moving to Lithuania.
Barclays Bank also recently said it will cut 1,700 frontline jobs across the UK as part of a strategy to reduce the number of branches as more and more customers use technology to do their banking. Reports said up to a quarter of branches could be closed.
The bank said in its results today: “The number of customers using digital channels grew substantially in 2013; mobile banking usage increased by 150% to 2.3 million customers and Pingit users doubled to over 1 million customers”
In 2013, Barclays cut jobs in the UK as part of a total reduction of 3,700 staff, after reporting a substantial drop in profits for the last 12 months.
One CIO-level source in banking IT professional said the trend of banks reducing IT headcount is continuing and creating serious business risks.
“They keep cutting people and outsourcing IT roles. This is making technology problems more common and harder to fix.”
He added that morale is low in banking IT departments. “When you cut half a team the other half have to work twice as hard. They begin to look for new jobs and up for the current job anymore.”
Barclays is investing in technology as part of its Transform project. “Other Transform costs of £356m were primarily driven by investment in technology and process improvements that will reduce future operating costs and enhance customer and client propositions,” it said in its results.