Bank of England to cut up to 100 jobs by 2015/16

 

Economics Editor

The Bank of England is to make 80 to 100 job redundancies, after accepting the restructuring advice of management consultants.

Threadneedle Street announced today that it hopes to make £18m in savings by 2015/16 from the shake-up. The review, conducted by Deloitte, is designed to improve the efficiency and effectiveness of the Bank’s central services division, where around 1,000 of its 3,600 staff work. The division covers information technology, human resources and legal services.

The Bank’s new Governor, Mark Carney, called in Deloitte and another high-profile consultancy firm, McKinsey, shortly after taking up his new position last summer to review the bank’s operations. The move raised eyebrows because it followed complaints from Coalition ministers of Whitehall departments wasting money on expensive external consultants. The Bank’s newly-appointed chief operating officer, Charlotte Hogg, a former McKinsey employee, led the reviews.

The Bank said yesterday that some staff will be moved into new roles, while other jobs will not be filled as employees retire. However, it also implied that there would be jobs losses, subject to consultation with workers.

The Unite union, which covers Bank staff, objected to the “imprudent” move saying Threadneedle Street ought to “set an example” to private banks which are also shedding staff. “This constant insecurity across the financial services industry is extremely damaging for the staff, who continue to work under the hardest of conditions” said national officer Dominic Hook. He added that Unite would “strongly oppose” any compulsory redundancies.

The Bank said the £18m savings from the redundancies would be “re-invested across the business in order to support delivery of the Bank’s statutory objectives”.

The external consultants are also set to deliver a separate “strategic plan” for the central bank, examining its priorities, resources, working practices and allocation of time. Threadneedle Street said yesterday that the proposals would be announced “in due course”. It has refused to disclose how much the consultants are being paid.

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