Barclays to cap hiring even if GDP recovers

 
Tim Wallace
Follow Tim
THE MOUNTING cost of regulation means banks will have to bear down on costs for the foreseeable future, Barclays boss Antony Jenkins told a conference of investors yesterday.

Sustained pressure on costs is expected to mean the bank will look to cut more jobs in the coming years, as Jenkins said he will keep a lid on spending even in future boom years.

Prudential and conduct reforms combine to hike costs and cut revenue streams simultaneously, the chief executive warned, meaning cost cuts are the only way of shoring up profits.

“The increased focus on judgement within supervisory regimes means these shifts will be both more permanent and yet less predictable,” he said.

“That is why I see costs as the key strategic battleground for our industry.”

Jenkins highlighted increased automation of processes as a key way to improve customers’ experiences and cut costs at the same time.

But automation also means cutting jobs, with changes expected in areas from branch level through to trading operations.

Jenkins pledged to axe 3,700 jobs at the bank last month