Page last updated at 19:56 GMT, Tuesday, 13 January 2009

Barclays planning 2,100 job cuts

Barclays Capital's Canary Wharf base
Barclays is the latest bank to cut jobs

Barclays is to cut at least 2,100 jobs globally across its investment banking and wealth management businesses, the BBC has learned.

The move came as it said it was reducing staff to match the "current market conditions".

It is thought 1,300 jobs will go at investment arm Barclays Capital, 500 axed at Barclays Wealth and 330 trimmed at Barclays Global Investors.

The Unite union said that 500 of the total jobs lost would be in the UK

Earlier this month, the bank announced that about 400 other jobs would go - mainly in its IT departments in Cheshire and London.

'Hire selectively'

In this economic environment, it is not acceptable for Barclays staff to arrive at work each day with the dread that they could be next
Graham Goddard
Unite union

"We can confirm that we have begun a process to reduce headcount across some parts of our investment banking and investment management units to ensure that we are appropriately sized given the current market conditions," a bank spokesman said, without confirming numbers or where the job losses would be.

"We will continue to hire selectively across those parts of the business that are growing."

The cuts would be equivalent to about 7% of its workforce.

Unite accused Barclays of failing to give workers the full picture of plans for staffing levels.

"We have stressed to the bank that they should come clean with their staff in order to reassure them that they will not be the next victim of the bank's strategy of death by a thousand cuts," said deputy general secretary Graham Goddard.

"In this economic environment, it is not acceptable for Barclays staff to arrive at work each day with the dread that they could be next in what appears to be a lottery of job losses at Barclays."

Restrictions

In November, Barclays shareholders voted overwhelmingly in favour of a plan to raise 7bn, mainly from investors in the Middle East.

It decided against taking money from the UK banking bail-out package because of the stipulations attached, which would have included restrictions on dividends, having government representatives on the board and a requirement to put its UK interests ahead of those of the bank overseas.

Other financial firms to announce job cuts have included Spanish bank Santander, which has said it will cut 1,900 jobs in its three UK businesses - Abbey, Alliance & Leicester and Bradford & Bingley.

UK firm Cattles, which offers loans to risky borrowers, is planning to cut 1,000 positions after its business was hit by the effects of the credit crunch.

Japanese financial services group Nomura said in December it would cut its staff in London by up to 1,000, after it bought parts of the failed US bank Lehman Brothers.

Bank of America has said it plans to cut between 30,000 and 35,000 jobs over three years following the completion of its takeover of Merrill Lynch.

And Credit Suisse has announced more than 7,000 job cuts globally.



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