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Barclays to eliminate 40,000 jobs, riding on digitalization

British bank Barclays is reportedly planning to scrap nearly 40,000 positions across the group operations, mainly in investment banking, riding on the wave of digitalization of operations.

In an interview, Barclays chief executive Antony Jenkins was quoted by media sources as saying that the bank will initiate a program to rationalize operations and save on costs.

Jenkins said that the goal was to manage the entire banking operations with the help of only 100,000 employees, instead of the current workforce of 140,000.

The lender, which paid £290m penalty over Libor rate rigging scandal and set aside a massive amount for payment protection insurance compensation, also witnessed decline in annual profit to £246m in 2012, compared to £5.9bn in 2011.

Previously, the bank announced to save £1.7bn per annum by 2015, by reducing 3,700 head counts primarily in its investment banking division and in retail banking operations in Italy and Spain.

Besides Barclays, many leading global banks are also automating their banking operations to reduce jobs and save operational cost.

Most recently, JP Morgan announced 17,000 job cuts, based on the estimation that customers will use automated teller machines as well as online and mobile banking for day to day transactions.