Barclays, the financial services company, is facing a tough time with its recent financial crisis. The company was fined a huge amount last year for alleged misconduct in business. This in turn, forced the Chief Executive Officer and Chairman to step down from their positions. The company now has sent out a notice to its employees indicating job-cuts leaving their employees in despair. The British giant is also planning to outsource its back-office jobs to India, as a measure to save costs.
Barclays’ outsourcing plans
The banking and financial services company of Britain is planning to move hundreds of its back-office jobs to India. The company is considering the option, as it would help company save costs. It is now important for the company to cut-costs in every possible way to streamline its services.
The company has a big number, 2,000 jobs on the line, at its investment banking unit in London. The unit is under trouble and Barclays have now sent a team to India with the responsibility of recruiting and training people. The newly recruited staff will supposedly replace the workers in New York and London, according to the sources.
The company has sent out a notice to all its employees informing about possible job losses. The exact number of jobs at risk is not known at the moment, but the company is expected to come out with more details about the job-cuts next month.
It is expected that those affected due to job-cuts will be largely the ones doing back-office jobs and support functions. Barclays currently has around 9,000 people working for it in the UK investment segment.
Fresh controversies are likely to arise among workers’ unions following the news of further outsourcing and job-cuts. The jobs that are to be off-shored to India are mostly the ones that are modestly paid. The company also says that it is considering the option of moving various jobs to different international locations.
Barclays is now keen to improve its operations after the recent scandals on mis-selling payment protection insurance (PPI) in the United Kingdom and an alleged fixing of inter-bank lending rates (Libor rates). The company feels that its new location strategy will help it improve its processes and this could ultimately benefit its clients.
The company was levied a fine of 290 million pounds by the regulators of US and UK for fixing the inter-bank lending rates. The company’s administration is now watchful about its reforms and taking tough measures for an up growth of the company.