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Barclays is in the process of removing 5,000 roles from its global workforce as part of a renewed push by executives to slash costs and improve the bank’s profitability.

Sky News has learnt that a total of roughly 5,000 jobs were shed from the British bank’s 84,000-strong ranks during 2023, with about a quarter of the reductions thought to have taken place in its UK operations.

The roles have been lost through a combination of redundancies and vacancies that will not be filled following the introduction of a hiring freeze in the middle of last year, according to an insider.

The level of workforce reduction is more than double the figure which circulated in media reports late last year, and represents one of the most significant cost-cutting plans at Barclays since the 2008 financial crisis.

The redundancies which form part of the programme are already in train but are yet to be formally announced publicly by the bank.

However, in a statement on Monday responding to an enquiry from Sky News, a Barclays spokesman said: “Barclays removed approximately 5,000 headcount globally through 2023 as part of its ongoing efficiency programme designed to simplify and reshape the business, improve service, and deliver higher returns.

“The group is also creating capacity to selectively hire front office roles in key businesses.

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“The majority of the individuals impacted are within Barclays’ support function, Barclays Execution Services “BX”, and the Barclays UK Chief Operating Officer function, as management layers are reduced and the Group improves its technology and automation capabilities.”

Barclays said it was “supporting impacted colleagues with training, advice and outplacement services, depending on their location”.

“The headcount reduction programme forms part of the potential material structural cost action charge announced at Q3 2023 results, to be taken in [the] Q4 2023 [results],” it added.

Barclays is likely to be pressed for more details on ongoing cost-cutting plans at its annual results next month.

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The bank has been grappling with the performance of its investment banking operations for years, and has committed to tackling the issue under CS Venkatakrishnan, its chief executive.

Nevertheless, the largest proportion of the redundancies taking place at the group is focused on its central services division, called BX, which provides back office support to other areas of Barclays.

Reporting third-quarter results in October, Mr Venkatakrishnan was candid about the challenges facing the company as it sought to become more efficient.

“We always modulate the size of our workforce everywhere in the world in which we are, and that’s what we will continue to do,” he told the media.

He added that Barclays would “look for efficiencies in different parts of the bank…are trying to make, and create, and run, a more efficient organisation…and you should expect us to look in all those places where we think we can increase productivity”.

Mr Venkatakrishnan – known as Venkat – was parachuted into the top job after the sudden exit of Jes Staley in November 2021.

Mr Staley left amid a bitter dispute with the City regulator over allegations that he had not been frank about the nature of his friendship with the late paedophile Jeffrey Epstein.

In October, the Financial Conduct Authority fined him more than £1m and banned him from the City after concluding that he had misled colleagues and the regulator about his ties to Mr Epstein

Barclays has been plagued by debate over the future of its investment bank for many years.

Under Bob Diamond, who became chief executive in 2011, it had pursued an aggressive and successful attempt to force its way into the ranks of Wall Street’s titans.

Since Mr Diamond departed over the Libor rate-rigging scandal in 2012, perennial questions have arisen about whether the group

On Monday, shares in Barclays were trading at around 154,75p, giving the bank a market capitalisation of about £23.5bn.

The stock has fallen by about 10% during the last year.

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Pinewood-owner Aermont among suitors for £850m Village Hotels

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Pinewood-owner Aermont among suitors for £850m Village Hotels

The major backer of Pinewood Studios is among the suitors vying to buy Village Hotels, one of Britain’s biggest mid-market hotel chains.

Sky News understands Aermont, which specialises in real estate-backed investments, submitted an offer last week for Village Hotels, which is owned by KSL Capital Partners.

City sources said KSL was seeking offers worth in the region of £850m or more.

A number of other parties are also understood to have tabled bids ahead of a deadline last week.

Blackstone, the giant private equity firm, is considering making an offer but has yet to do so, according to insiders.

The auction is being handled by bankers at Morgan Stanley.

It comes months after attempts to sell Center Parcs UK were called off, while a mooted sale of Travelodge has so far failed to result in a deal.

Village Hotels comprises a portfolio of more than 30 properties from Aberdeen to Bournemouth, with rooms available at budget prices.

Founded in 1995 as Village Urban Resorts, the hotels feature pub-style restaurants and gyms.

KSL was reported to have paid £485m for the business when it bought it in 2014 from De Vere Group.

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The Denver, Colorado-based buyout firm has also owned other UK hotel chains including Hotel du Vin and Malmaison.

Aermont and Blackstone declined to comment.

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Former Rank chief Birch in talks to run Ladbrokes-owner Entain

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Former Rank chief Birch in talks to run Ladbrokes-owner Entain

Henry Birch, the former boss of Rank Group, is among the candidates vying to run Entain, the FTSE-100 owner of Ladbrokes.

Sky News has learnt that Mr Birch is one of a small number of candidates being considered by Entain to replace Jette Nygaard-Andersen as its permanent chief executive.

The recruitment process comes at a challenging time for Entain, which has been beset by boardroom upheaval and regulatory difficulties in various international markets.

Its stock has halved in the last year, leaving it with a market capitalisation of just under £5bn.

This weekend, sources close to the company confirmed that Mr Birch was a serious contender for the post, although they said others were also in contention.

An appointment could still be weeks or even a small number of months away, they added.

Henry Birch, CEO of Very Group
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Henry Birch, former CEO of Very Group

Mr Birch stepped down as chief executive of Very Group, the online retailer owned by the Barclay family, in 2022.

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He is an experienced gambling industry executive, having spent four years as chief executive of William Hill Online prior to joining the London-listed multichannel gaming operator Rank Group.

He has also held roles at Leisure & Gaming plc and BettingCorp.

Under Mr Birch, Very Group broke the £2bn annual sales mark for the first time.

Investors in Entain have been pressing its board to recruit a new chief executive with substantial gambling experience as it grapples with a plunging share price and numerous regulatory and strategic challenges.

Last week, Sky News revealed that former bosses of bookies Coral and Skybet had rejected overtures to become its new boss.

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Pic: Reuters

Industry sources said that Dan Taylor, chief executive of Flutter Entertainment’s international operations, had also been approached, although it was unclear whether he was interested.

Entain has been under siege from activist investors for months.

In January, it announced that Ricky Sandler, who runs Entain shareholder Eminence Capital, would join its board as a non-executive director.

Last month, it said that Barry Gibson, its chairman, would retire later this year and be replaced by interim chair, and former acting CEO, Stella David.

Entain has hired bankers to sell PartyPoker and other non-core operations, which the Financial Times reported could include Netherlands-based BetCity, which Entain bought for £398mn last year.

As well as Ladbrokes, Entain owns Coral and a stake in BetMGM, a major US betting player.

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MGM Resorts, the US casino operator behind the Bellagio in Las Vegas, attempted to buy Entain in 2021 but was rebuffed at a much higher valuation than the UK company’s shares trade at now.

MGM has since ruled out a further bid, although analysts expect it to return at some stage.

The company has faced a deluge of regulatory problems, triggering sharp criticism of its governance and business practices.

Last December, it was ordered to pay £615m for failing to prevent bribery at its former Turkish subsidiary under a deferred prosecution agreement.

Shares in Entain closed at 778.8p on Friday, giving the company a market capitalisation of £4.98bn.

Entain declined to comment, while Mr Birch could not be reached for comment.

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Motors.co.uk among suitors raiding stricken Cazoo’s garage sale

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Motors.co.uk among suitors raiding stricken Cazoo's garage sale

A privately owned used-car platform is circling Cazoo Group, its stricken US-listed rival which is on the brink of administration.

Sky News has learnt that Motors.co.uk is a leading contender to acquire Cazoo’s marketplace operation, which would include its brand and intellectual property assets.

The process to auction the used-car platform’s constituent parts comes after it spent tens of millions of pounds on sponsorship deals in football, snooker and darts in a rapid attempt to gain market share.

Earlier this week, Cazoo filed a notice of intention to appoint Teneo as administrator, just three years after it floated in New York with a valuation of $8bn.

The filing was intended to provide protection from creditors while Teneo finalises asset sales.

Since an announcement last month about a restructuring of the group, advisers have offloaded a string of assets and unwound Cazoo’s previous operating model to transform it into a marketplace.

Among those have been the disposal of Cazoo’s vehicle fleet, which sources said had been achieved at higher-than-anticipated values, reflecting a current shortage of used cars in the market.

Teneo is also said to have struck a deal with Constellation Automotive, the owner of Cazoo’s rival, Cinch, involving a handful of sites and dozens of jobs.

Meanwhile, several parties are understood to have expressed an interest in Cazoo’s wholesale operation and other vehicle collection sites.

One industry source said the pivot to a platform model had seen its inventory rise to more than 15,000 cars, with Cazoo now the online vehicle marketplace where consumers can buy and sell cars under a single brand.

If, as expected, the group does fall into administration, it would underline the rapid implosion of a company which once ranked among Britain’s hottest technology start-ups.

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Founded by Alex Chesterman, the founder of Zoopla, it raised hundreds of millions of pounds in funding, and rapidly attracted a ‘unicorn’ – or $1bn – valuation.

Mr Chesterman left the business several months ago in the wake of a balance sheet restructuring which saw hundreds of millions of dollars of debt converted to equity.

One insider said the formal triggering of insolvency proceedings was likely to attract wider attention in Cazoo’s assets, including its brand.

It was unclear on Friday how much Motors.co.uk or other suitors for the marketplace were likely to bid for it.

Alex Chesterman, Founder of Cazoo Ltd
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Cazoo founder Alex Chesterman left the business several months ago

A spokesperson for Cazoo said: “Our new marketplace model, where consumers can both buy and sell cars, is revenue generating and performing ahead of expectations with interest from almost 100 car dealers including many household names wishing to trade on the Cazoo platform.

“Cazoo has successfully restructured and significantly reduced the cash burn of the group, resulting in a cash position in excess of £95m at 30th April 2024 compared to £113m at 31st December 2023, and the platform now has approximately 17,000 cars which is more than double the volume we previously supported and demonstrates the scalability of our technology and the strength of the team.

“We are making efforts to secure the next phase of our business and are grateful to our employees for their hard work and commitment.”

Motors.co.uk did not respond to enquiries, while a spokesperson for Cazoo declined to comment on talks about asset sales.

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