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Job cuts to hit Barclays Wealth & Investment management
by Danielle Levy on Nov 08, 2013 at 08:16
Barclays' regional management teams are waiting to hear their fate, with more job cuts expected as part of a broader overhaul of the wealth and investment business.
The bank has already confirmed a 35% reduction in private banker headcount this week, down to 180. It said further redundancies within the management structure could go.
Out of the 100 redundancies announced this week, 50 are based in London and the bank said it anticipates the total figure, including support staff and management, would total over 150, Wealth Manager can reveal.
The cuts come as the bank overhauls the way it services clients with less than £500,000 with its new Private Clients division, a decision that was made by new chief Peter Horrell. Clients served by the new division will have an unregulated individual appointed as their main point of contact.
While the bank declined to confirm whether regional centres will be merged, a spokesperson said: ‘We remain committed to all our regional offices, however the leadership team into which these offices report may change as a result of any redundancies.’
The new ‘lighter touch’ private clients division will be run out of Glasgow, Birmingham and London. The bank said clients will be given a new point of contact who is not regulated but overseen by a regulated individual, who would be on hand to assist. Wealth Manager understands the clients will be serviced from call centres across the three locations.
The spokesperson said Barclays is not planning to make material changes to the investment proposition when the new private clients division comes into force, but explained: ‘Over time there will be changes to the investment solutions, but we expect to offer discretionary, investment advice, execution-only, financial planning and access to banking and credit.’
Regulatory pressures are one driver behind the restructure. What was traditionally the Gerrard business operates from a different legal platform, and the regulators are forcing banks to streamline the number of legal entities they operate from.
The total net worth of these clients represent a small percentage of the bank’s £50 billion in assets under management in the UK.
The bank acquired the Gerrard business 12 years ago and inherited a number of clients with portfolios under £500,000, a segment of the market it does not actively target.
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