Barclays Tells Staff it Will Halt Job Cuts to Help Get Through Virus Crisis -Financial 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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