Barclays 'looking to cut wage bill by $683m'

28 February 2013

Barclays is planning to save around £450 million ($683 million) from its wage bill in the aftermath of the Libor manipulation scandal.

The major British bank was hit with a collective fine of around £290 million from regulators on both sides of the Atlantic last summer for its involvement in this illegal activity and an insider has told Reuters how the company is planning to restructure its business following the fiasco.

As well as this significant cut in remuneration packages, the source said the financier is also looking to claw back around £140 million from past pay awards due to other illicit episodes, such as the mis-selling of payment protection insurance (PPI).

Further details of the reductions will be unveiled when Barclays releases its annual performance report next week.

Earlier this month, the firm revealed it experienced a huge decline in pre-tax profit during the fourth quarter of 2012 because it had to set aside large budgets to deal with compensation claims related to issues such as PPI.

By Tony Aynsley

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development