Barclays to cut an estimated 3,000 jobs

2 August 2011

Barclays bank has warned of an estimated 3,000 job cuts as the financial institution looks to slash costs and boost profits.

The firm made the announcement as it reported a drop in pre-tax profits of a third to £2.64 billion during the first half of the year when compared with the same period in 2010.

Pre-tax profits were hit by £1 billion compensation charge the bank made provision for in relation to the miss-selling of payment protection insurance to customers.

Barclays has already let 1,400 people go so far this year with the headcount reduction expected to speed up during the second half of 2011.

However, Bob Diamond, chief executive at Barclays, said he was pleased with the progress Barclays had made in other areas during the first half of the year.

“We have delivered underlying profit before tax up 24 per cent to £3,678 million, and our underlying return on average shareholders’ equity improved to 9.1 per cent, despite a lacklustre economic environment in many of our major markets, which impacted income generation.”

Barclays has made 700 jobs redundant at Barclays Capital while further positions are expected to be cut within its Spanish branch network.

By Jim Ottewill

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