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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Banks

Barclays cost cutting could see 17,000 jobs go

New cost-cutting measures at Barclays PLC (LSE:BARC), aimed at delivering annual savings of £2bn, could result in 17,000 job losses.

Analysts at research house Third Bridge estimate a 20% reduction in headcount would be required to achieve the figure being touted. The high street lender currently employs around 85,000 people.

Third Bridge believes the cull "would not impact day-to-day operations", and adds: "Previous cost reduction programmes have not been executed effectively, in some part due to its political culture. A coherent strategy is needed for future success but is an uphill battle."

Barclays shares opened 6% higher 157.55p after the bank unveiled its three-year plan, which also includes a £10bn return to investors - mainly by way of a significant share buyback programme.

Jefferies said the high street lender is 'giving people what they want' with its new three-year plan. It hails the 12% return on equity target as 'ambitious' along with the £10bn it plans to hand back to investors.

The investment bank rates the stock 'buy' up to 220p.

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