Barclays to shed up to 1,000 jobs
By Jill Treanor
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| Barclays is to close its financial planning division and sell investment products over the web. Photograph: Suzanne Plunkett/Reuters |
Bank is shutting its financial planning arm, and coming under renewed fire for the bonuses its bosses are receiving
Unions attacked the bonuses being paid to the bosses of Barclays today, as the bank announced it was shutting its financial planning arm, with the potential loss of up to 1,000 roles.The bank has begun consultation with staff and the union Unite about closing its financial planning business, whose staff provide face-to-face advice to customers through the bank's 1,674 branches across the country. The bank will now move to selling investment products over the internet.
Rob MacGregor, Unite national officer, said: "Barclays management should hang their heads in shame as 1,000 hard working staff are told they no longer have a job at the bank. Are the senior management of Barclays too busy counting their bonuses that they have totally lost touch with those who make their business successful?"While the bosses of Barclays have not yet been handed their bonuses, Bob Diamond, the new chief executive, is believed to be entitled to a payout of around £8m for 2010.
"These highly trained workers will now face a bleak future along with the other 2.5 million unemployed in this country. This news once again confirms that contrary to what the Conservative government claims, the private sector will not fill the gap left by the slashing of jobs in our public services," McGregor said.
Barclays has decided to close the financial planning business after a "detailed review" found that it would be unable to "deliver a return that would justify the investment required". Customers are increasingly buying financial products online, Barclays said, as it revealed it would now only offer retail investment services via the internet.
"Barclays is consulting fully with the union Unite and, if the proposals go ahead, is committed to supporting employees through this change, including a full range of redeployment services identifying potential options within and outside Barclays," the bank said.
The operation is ultimately overseen by Antony Jenkins, who appeared before the Treasury select committee earlier this month alongside Diamond. The UK business in total employs 33,200 of the bank's 140,000 workforce.
The bank's investment banking arm Barclays Capital is also cutting jobs, with around 200 going in London. BarCap was today fined £1.1m by the Financial Services Authority for failing to keep clients' money safe for eight years.
