3,700 job cuts set to go ahead at Barclays

Barclays has announced today that it will cut 3,700 jobs following a strategic review that will aim to cut costs by £1.7bn by 2015. Barclays reported a sharp drop in pre-tax profit to £246m in 2012, down from £5.9bn a year ago, which coincides with the recent announcement that the bank set aside £1.6bn to compensate customers that were mis-sold payment protection insurance (PPI) and a further £850m for those mis-sold interest rate hedging products. The job cuts will mainly occur within the investment banking department, of which 1,800 will occur in Asia from its corporate and investment bank and 1,900 will come from its European retail and business banking. The job cuts will take place this year and aim to save £500m in the first quarter of 2013. Barclays has been under scrutiny recently due to the various mis-selling scandals, however Mr Jenkins, who replaced Bob Diamond as chief executive in August, has pledged to transform the banking group. He admitted that  “It will take years before people change their impression of us.” Time will tell whether these cuts and changes will be enough to win back consumer confidence. The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Setfords Solicitors are a national full service law firm, with employment law solicitors in Oxford and across the country.