Barclays layoffs: Leading UK-based bank announced restructuring efforts before Christmas holidays

Just before Christmas holidays this year, Barclays handed out pink slips instead of year-end bonuses, firing dozens of employees. The UK-based bank also added insult to injury by denying many fired employees their annual bonuses.

It’s no doubt that annual bonuses are typically a significant portion of the employees’ compensation. For context, investment bankers often earn a $200,000 salary accompanied by bonuses reaching up to $1 million, according to insiders.

Competitors such as Goldman Sachs reportedly offer partial bonuses to employees dismissed late in the year. But Barclays decided not to do that. The bank is facing serious backlash and possible legal threats.

Barclays layoffs: Fired employees consider legal suits

Reports suggest that the fired bankers are considering legal suits against Barclays seeking $10 million or more, stressing that bonuses are earned throughout the year and should not be treated as discretionary, reported the Times of India.

Tanvir Rahman, an attorney at Filippatos, called Barclays’ decision “heartless”, but noted that the odds of the possible suits succeeding are slim because banks often stipulate in their labour agreements that an employee must be employed at the time of the bonus to get it.

The recent layoffs come as part of the UK-based bank’s three-year strategy to streamline operations and reduce its reliance on investment banking revenue. Nonetheless, this isn’t the first time Barclays has tightened its purse strings.