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Barclays (BCS) Plans Job Cuts at Corporate & Investment Bank Unit

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After avoiding workforce reductions amid the coronavirus pandemic, Barclays Plc (BCS - Free Report) is planning to resume job cuts. Per a Bloomberg News report, citing persons familiar with the matter, the bank will likely slash jobs at its Corporate and Investment Bank Unit.

Barclays is mulling the reduction of around 60 jobs. These include some senior roles in the United States and other countries. Escalating costs have prompted management to resume these job cuts.

The bank’s corporate and investment bank unit reported a 22% rise in total income last year. However, the pandemic-induced mayhem and subsequent economic slowdown hurt Barclays’s lending business. Further, the company expects loan growth to remain muted this year as well.

The latest cuts are part of the company's plan to save costs and improve efficiency. Barclays has undertaken similar actions in the past few years, while streamlining and restructuring its businesses. These initiatives are anticipated to continue supporting the bottom line in the near term.

Shares of this Zacks Rank #2 (Buy) stock have surged 83.9% over the past six months, outperforming the industry’s 40.6% rally. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Barclays wasn’t the only one that paused job cuts last year. Wells Fargo (WFC - Free Report) , Bank of America (BAC - Free Report) and JPMorgan (JPM - Free Report) did the same in the earlier part of 2020.

Nevertheless, Wells Fargo, amid mounting pressure of lower operating expenses, was among the first ones to start slashing jobs in the second half of 2020. Subsequently, Bank of America too resumed the same and reduced staff in the Global Banking and Global Markets segments this February, as reported by Bloomberg News.  Earlier this year, it was also reported that even JPMorgan is contemplating to cut hundreds of jobs in the consumer division.

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