HomeBusiness DigestBarclays mulls more lay-offs

Barclays mulls more lay-offs

Roadwin Chirara

BARCLAYS has not ruled out further staff retrenchments as the company explores new avenues to reduce its operational costs.

s-serif”>This follows the group’s loss of an appeal at the National Employment Council (NEC) against salary increments for staff.

The bank had lodged an appeal against awarding a cost of living adjustment of 132,5%, arguing that it was already the highest paying financial institution.

Barclays however agreed to increase employees’ salaries by 50%.

The NEC ruled that the bank should award the salary increment, but could stagger it starting with 105% effective this month and 27,5% in January.

The banking group had been pursuing cost-cutting measures based on staff-reduction, a situation which saw more than 500 workers being retrenched.

Barclays managing director, Charity Jinya, said the bank could not rule out further staff retrenchments as the numbers would have to tally with the amount of business the company was receiving.

“We continue to look at the relationship between staff and the work to be done,”Jinya said.

“We are not ruling out anything as the market is dynamic and we have to adjust in line with market demands,” said Jinya.

She however said the company would strive to maintain its current staff levels.

Jinya said the bank already had deposits with the central bank of $107 billion, way above the new statutory reserves of $100 billion.

“With regards to the issue of the bank meeting the new statutory reserves, the bank has $107 billion deposited with the Reserve Bank,” Jinya said.

In its half-year results, Barclays declared a profit after tax of $142 billion, a marked increase of 145% from $58 billion last year.

The bank’s profit before tax declined by 26% to close the half-year at $225 billion compared to last year’s figure of $305 billion.

Barclays’ operating costs ballooned by 86% to 273% while its income increased by 9% to $557 billion, compared to $510 billion in 2004.

Salary increments which had become a topical issue in the banking sector have so far seen other financial counters adjusting their employees’ salaries in line with those recommended by the Zimbabwe Banks and Allied Union.

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