Barclays set to shed 3,000 more jobs

Barclays, which has 56,900 staff in the UK, has reduced its headcount by 1,400 so far this year across the group and this trend will continue and increase, chief executive Bob Diamond said.

The warning came as Barclays reported a 33 per cent drop in profits to £2.6bn after it took a £1bn hit to cover compensation for customers who were mis-sold payment protection insurance. But the group’s underlying performance – stripping out the PPI provision – revealed profit growth and the bank is on target to meet its business lending targets under the Project Merlin agreement with the Government.

Barclays cost-cutting plans follow in the footsteps of HSBC, which yesterday announced plans to axe 30,000 staff, and Lloyds Banking Group, which in June unveiled plans to shed 15,000 jobs.

Mr Diamond said the cost-cutting programme was necessary for the bank to meet its target of increasing returns for shareholders - but would not give specific targets for headcount reduction.

He said: “In the first half of the year net headcount was down about 1,400. We should assume that trend will continue and increase. We’re not giving specific targets.” Mr Diamond agreed a net reduction of 3,000 for the full year was possible.