Barclays Tells Staff it Will Halt Job Cuts to Help Get Through Virus Crisis -Financial News
April 14 2020 - 8:43AM
Dow Jones News
By Paul Clarke and Ryan Weeks
Of Financial News
Barclays PLC has told staff this week that it will halt a round
of job cuts and offer financial support to employees hit by recent
redundancy programs amid the Covid-19 crisis.
It is the latest example of banks looking after their employees
during the pandemic.
The U.K. lender said in a memo, seen by Financial News, that its
plan to trim staff outlined in the "early stages of the crisis"
would be put on hold as "we do not think it would be right to add
to the pressure on our people as we focus on serving our customers
and clients."
"Even if the strategic rationale for proceeding is sound, we've
called a halt while we get through this crisis," the bank said.
In January, Barclays reportedly embarked on around 100 cuts
across its corporate and investment bank in London and Asia, with a
focus on senior roles within its trading functions. Then in early
March, it unveiled hundreds more job losses, primarily through the
closure of a processing plant in Leeds.
As well as pausing the cuts, which were due to take place over
the summer until September, Barclays said it would provide
additional financial support for laid-off staff emerging into a job
market that is largely frozen because of the economic impact of the
Covid-19 crisis.
The new scheme will help those leaving the bank between March 20
and the end of June and who have been unable to find a new
position.
"The package is modeled on the U.K. government's support scheme
for workers placed on furlough as a consequence of Covid-19, and
payment will be fully funded by Barclays," the bank said. "This
financial support will be on top of redundancy leaver terms already
provided."
Barclays follows a number of other large investment banks which
have promised to pause job cuts during the coronavirus crisis. UK
rival HSBC Holdings PLC has paused its sweeping restructuring
program, which will see around 35,000 jobs cut over the next three
years.
Bank of America Corp., Citigroup Inc., Deutsche Bank AG, Credit
Suisse Group AG, Morgan Stanley and UBS Group AG have also promised
to stop layoffs during the Covid-19 crisis.
"We recognize that the current crisis makes the prospects of
securing another job in the near term more challenging," Barclays
said in the memo.
Barclays didn't immediately respond to a request for additional
comment.
Website: www.fnlondon.com
(END) Dow Jones Newswires
April 14, 2020 08:28 ET (12:28 GMT)
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