Barclays Plc (BCS) have been making recent headlines on the back of releasing its Q3 results. The organisation’s £1.9bn pre-tax profit came in just above analyst expectations but was down 4pc when compared to results of the previous year.
Barclays possibly laying off dozens of US consumer banking employees
In a Tuesday report, the bank confirmed profit losses as it announced renewed cost-cutting initiatives. Barclays did not rule out job cuts as part of this drive to boost its profits. Regarding the company’s Q3 performance, the Group’s chief executive officer (CEO), CS Venkatakrishnan, said:
We delivered an 11.0% RoTE in Q3, against a mixed market backdrop, as we continued to manage credit well, remained disciplined on costs and maintained a strong capital position, with a Common Equity Tier 1 (CET1) ratio of 14.0%. We see further opportunities to enhance returns for shareholders through cost efficiencies and disciplined capital allocation across the Group.
Having already cut hundreds of jobs this year in an effort to curb costs, experts feel Venkatakrishnan implied more is yet to come. According to Reuters, a reliable source indicated Barclays plans to axe dozens of US consumer banking division employees.
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In its report, Reuters indicated that redundancies account for approximately 3% of employees in this division. On Tuesday, the bank’s shares dropped 6% and also affected other UK lenders.
Venkatakrishnan indicated the bank will update investors in February at the end of the current fiscal year. The rumoured job cuts can cause customers to miss their payments, which will then also affect the bottom line.
