Barclays cuts 300 back office and IT jobs

Barclays has announced plans to cut 300 back office IT and operations roles at its corporate banking division.

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Barclays has announced plans to cut 300 back office IT and operations roles at its corporate banking division.

Barclays said that cuts are being made due to increased automation of processes and use of technology, but was unable to provide more details. The exact number of IT roles being cut was not given at this time.

The job losses will mostly affect staff at its London office, with 100 product specialists also targeted as front and back office teams are merged.

The bank expects that most staff will leave through voluntary redundancy schemes.

“As part of the ongoing transformation of Barclays, the shape of Corporate Banking will also need to change, as we react to advances in technology and simplify the business to better serve our clients,” a spokesperson said.

“This means that some team sizes will reduce but we expect the vast majority of reductions to come through voluntary redundancy and natural attrition. Wherever possible we will avoid compulsory redundancies, but if they are necessary, full support packages will be offered to affected employees.”

Dominic Hook, Unite national officer, urged the bank to rethink its plans to axe jobs: “Barclays employees will be left reeling after another morning with Barclays job losses in the headlines," he said.  

“This constant insecurity will do nothing for the morale of the workforce. Unite is calling on Barclays to rethink these job losses and ensure that there are no compulsory redundancies at the bank.” 

Barclays is currently undertaking a major cost cutting prgramme across its business, designed to reduce its net operating expenditure by £1.7 billion by 2015. 

The bank announced in November last year that it would also cut 1,700 frontline staff, as it aims to deliver more services through digital channels, such as online and mobile.

There has also been speculation this week that Barclays is to close 400 branches and increase the use of banking machines.

The bank denied the claims that branches would be shut, but indicated that greater automation would be seen across its network.

"We have no plans to announce significant reductions to our UK branch network,” a spokesperson said on Wednesday.

"Increasing use of technology is changing the way in which customers choose to do their banking and creates opportunities for Barclays to offer services in new ways, complementing the branch network.

"We have consistently been clear that, over time, there will be fewer traditional branches as we move to provide banking services to customers where and when they find it most convenient. However, the branch network will remain an important part of our banking service and we will never leave a community without the ability to transact.

"Whilst it is inevitable that there will be speculation about how these changes will impact on the branch network, this will be driven by the needs of our customers and, therefore, there is not a target for a number of branches to be closed, nor a timeframe for such action."

Barclays has cut a large number of back office jobs since the start of the financial crisis, with 1,800 IT roles offshored in 2008, and 422 positions axed in 2012. The bank, which employs a total of 147,500 staff worldwide, was also unable to rule out more IT job cuts at its wealth management division in September last year.

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