Jakarta –
The well-known British bank Barclays said it had carried out mass layoffs (PHK) of around 5,000 of its employees globally. Banks admitted that this step was taken to cut operational costs.
Reporting from Reuters, Tuesday (9/1/2024), most of the cuts occurred in the bank’s service support unit, Barclays Execution Services or what is known internally as ‘BX’. The number of employees laid off was recorded to be much greater than the report received by Reuters in November 2023.
“Barclays is reducing approximately 5,000 employees globally by 2023 as part of an ongoing efficiency program designed to simplify and reshape the business, improve service and deliver higher profits,” said a Barclays spokesperson, Monday (8/1) yesterday.
This mass layoff is part of Barclays CEO CS Venkatakrishnan’s plan to increase company profits by reducing operational costs. Senab, the boss of a well-known British bank, admitted that Barclays was experiencing a decline in revenue accompanied by an increase in operational costs during 2023.
For information, previously in November 2023, Reuters received a report that Barclays was planning mass layoffs of 1,500-2,000 employees. This cut is part of the company’s operational savings plan of up to 1 billion pounds or the equivalent of IDR 19.5 trillion (exchange rate IDR 19,500/British pounds).
The report stated that most of the cuts would occur in the BX work unit. Because in the last 5 years the number of BX staff has increased significantly, which means the company has to dig deeper into its pockets for operational financing.
The number of BX employees was recorded at around 22,300 at the end of 2022, up from 20,000 at the end of 2017. Meanwhile, annual operational costs at BX have increased to 2 billion pounds (Rp. 39 trillion), from previously 1.8 billion pounds. (Rp. 35.1 trillion).
In addition, since Venkat took over as CEO the company has been grappling with the impact of an investment error that had cost the bank hundreds of millions of dollars. Then the value of Barclays shares was also recorded as continuing to decline by up to 26% since November 1 2021.
(fdl/fdl)
2024-01-09 03:55:41
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