Barclays to move hundreds of back-office jobs to India
Barclays is planning to offshore hundreds of roles at its troubled investment banking unit to India in a bid to cut costs, The Independent has learnt.
The bank is understood to have dispatched a team to recruit and train new staff there to replace workers in both London and New York.
Separately, the bank announced consultations with UK staff at the investment bank over what could be substantial job losses as a result of new chief executive Antony Jenkins' "Transform" programme. They are designed, said the bank, to "optimise the business".
The company refused to comment on the number of staff who will be affected by the offshoring but the final number will likely be in the hundreds. Those affected will be largely those in back-office and support functions.
Barclays was hit by fresh scandal over the weekend when it emerged that a highly critical report into its American wealth management division was suppressed by a senior manager, who has since quit without a pay-off.
That came just days after Mr Jenkins told all 140,000 members of staff to clean up their acts or leave in a letter last week.
News of further offshoring and job losses could generate fresh controversy, particularly among unions, given that the roles slated to move to India will be primarily relatively modestly paid ones.
Analysts and investors want to see more action to curb top bankers' pay at the company. Those in higher pay grades are seen as having caused most of its problems, including the £290m in fines when highly rewarded traders attempted to manipulate Libor interest rates. They argue that the way the banks' money is shared between top bankers and shareholders, who risk their money to back their activities, has moved too far in the direction of bankers.
Mr Jenkins will next outline his plans for the bank at a strategy presentation on 12 February, although he is expected to resist calls from some investors to hive off the investment bank.
He has made a number of moves already, such as the appointment of Hector Sants, formerly chief executive of the Financial Services Authority, to head up relations with the Government and regulators.
With a package that could top £3m he has been dubbed "the most expensive compliance officer in the City".
A Barclays spokesman said today: "As part of our ongoing location strategy, we have been and will continue to move roles from one international location to another. This strategy will deliver improvements in our processes for the ultimate benefit of our clients."
- 1 Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
- 3 Bill Cosby: Isn’t it obvious why his accusers have stayed silent up until now?
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Ferguson decision: Tea Party website mocks Michael Brown's family over T-shirt typo
Michael Brown shooting: Ten things we know – or know better – now the Ferguson grand jury's work is over
Isis propaganda image showing 'abuse of Muslim woman by soldiers' is actually taken from Hungarian porn film
Derren Brown on the disappointment of coming out: 'It’s not that people react badly to it – they really don't care'
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Revealed: How the world gets rich – from privatising British public services
Exclusive: UK approved £7m Israeli arms sales in six months before Gaza conflict
iJobs Money & Business
£Attractive: Citifocus Ltd: High calibre individual with significant product d...
£Negotiable: Citifocus Ltd: Leading global bank seeks experienced credit analy...
£Attractive Package: Citifocus Ltd: High calibre individual with a high degree...
£Attractive: Citifocus Ltd: High calibre individual with superior academics an...