Barclays considering closure of 400 branches, 40,000 job cuts - UPDATE

29th Jan 2014 10:24

Barclays responded on Wednesday to reports that the banks Is considering closing down a quarter of its high street banks and slashing 40,000 jobs.The bank said it notes media speculation on potential future cost reduction measures and would lay out its plans to improve its leverage position at its full-year results on February 11th.However, Barclays said there was no intention to make an announcement about branch closures in the UK.Chief Executive Antony Jenkins is believed to be eyeing 400 branch closures in the next five years or so as the increasing use of technology replaces jobs.It is understood Barclays will remove managing directors from the investment bank, already the target of more than 1,600 reductions a year ago, when it publishes its results next month.While Barclays would not comment on Tuesday night, Jenkins made regular references to technology in his presentations to City analysts. Technology has already led to a 10% reduction in the use of branches in five years. In a statement on Wednesday, the bank said it had come under added cost constraints related to litigation and regulatory penalties. The costs will be revealed in the annual results next month."Compared to previous guidance, including the 2013 cost target of £18.5bn excluding £1.2bn costs to achieve Transform, the results will include additional approximate charges against costs of £220m and against income of £110min the Investment Bank in Q4 relating to litigation and regulatory penalties," the bank said.Barclays' cost target for 2015 remains at £16.8bn, excluding costs to achieve its so-called 'Transform' strategy.News of possible job and branch cuts at the lender sparked fresh fears for the banking industry after Lloyds Banking Group decided to axe half of the relationship managers handling queries from small businesses as part of more than 1,300 redundancies.The bank has been recently hit by a series of scandals including LIBOR rigging. Shares in Barclays fell 0.84% to 271p at 14:52 on Wednesday.RD