Barclays reportedly plans to axe 30,000 jobs to cut costs

The bank, which employed about 132,000 people at the end of December, is implementing job cuts announced in the past few years and will shrink staff numbers further by automating operations.

“N”>Barclays (BARC.L) has set no new targets to cut jobs beyond the 19,000 redundancies which it announced in May previous year, sources familiar with the matter said on Monday, playing down a report of further reductions.

John McFarlane, 68, who took over as chairman in April, earlier this month ousted Jenkins and pledged to tackle a “cumbersome and bureaucratic” bank, in a move that has sent Barclays shares up about 12 percent.

From the announcement of Jenkins’ departure, the share price of the struggling bank has already risen 11% to 280p, its highest level year to date.

The Times report said the bank aims to reduce its global workforce to below 100,000 by the end of 2017 and is considered the only way to address the bank’s underperformance.

McFarlane has indicated that he will focus on boosting the ailing firm’s revenue.

Investors and financial analysts are likely to press for more detailed information about the bank’s turnaround plans when Barclays reports its second-quarter financial results on July 29. “But it’s actually about revenue and increasing revenue growth way over the cost of capital growth”.

Barclays is cut 30,000 jobs over the next two years, according to The Times.

Jenkins will be replaced by a potential candidate, who is expected to expedite the process of cutting jobs. Germany’s Deutsche Bank and Royal Bank of Scotland PLC were downgraded by S&P in June alongside Barclays, and major banks like HSBC and Citigroup have also slashed thousands of jobs in recent years. Moreover, the bank must separate its retail banking business from its investment arm within the next three years under new regulations aimed at providing more protection to customers and taxpayers, Reuters reported.