Barclays Wealth and Investment Management is to make around 100 private bankers redundant as part of its strategy to reduce the complexity of its business.
The 100 bankers are locked in talks with Barclays - which is working with Unite- and will discover their compensation packages over the next two days.
The cuts represent 35% its bankers and reduces the overall number to 180. This follows the bank's decision to focus on higher net worth clients. A number of support staff will also lose their roles as part of the overhaul.
One of the triggers for the job cuts dates back to 12 years ago when Barclays inherited a number of clients with portfolios under £500,000 following its acquisition of Gerrard, a segment of the market it does not actively target.
Through the restructure, these clients will be transferred to a dedicated proposition within the business called Private Clients, where they will receive a 'lighter touch' service. The bank stressed these clients remain important to the business and will continue to receive advice, although some will no longer have day-to-day contact with a regulated investment manager.
Regulatory pressures were another motive behind the restructure. 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.
A spokesman for Barclays told Wealth Manager: 'Wealth and investment management continues to be a key area of growth within Barclays. We are making good progress in implementing a new strategy, designed to make us the ‘go-to’ provider of wealth and investment management advice and solutions globally. It builds on our strengths, focuses on competing where we can win and simplifies how we operate.
He added: 'We are making changes to the way we service our affluent clients in the UK, and as a consequence a number of private banking and support roles will no longer be required.'
'We will of course support those bankers affected in any way we can and we will communicate clearly with clients to explain any changes to the way in which we look after them. We continue to invest in technology and processes so that we set the standard in client experience.'