Barclays and Goldman Sachs squeeeeze IT staff

Lloyds swings even bigger axe

Build a business case: developing custom apps

Goldman Sachs is demanding UK contractors take a compulsory 15 per cent cut in day rates, and staff have been told by agencies that this was a "take-it-or-leave-it" offer without room for negotiation.

The cuts begin this week, and there are expected to be some job cuts too. Goldman Sachs has previously announced a ten per cent cut in staff numbers.

We can also reveal that Barclays Capital is cutting jobs within its IT department - about 40 people are expected to lose their jobs in the UK.

Barclays Capital is looking for voluntary and compulsory early retirements to reduce headcount.

The news is hardly surprising given current problems, but staff seemed to think the recent takeover of Lehman Brothers would make their jobs safer. Barclays, and HBOS, have previously demanded contractors take pay cuts.

Lloyds TSB raised fears yesterday that its takeover of Halifax Bank of Scotland would lead to serious job cuts when it announced potential savings of £1.5bn at the merged bank.

The company told shareholders it had carried out detailed analysis of areas of overlap between the two businesses. It expects to cut £45m from central and support functions by 2011. In wholesale and international banking it expects to save money by laying off overlapping management functions and integrating processing and IT platforms. This should save the firm £430m annually by 2011.

It is looking to its UK retail business to cut £790m from annual costs by closing branches, call centres and removing associated managers, as well as by integrating process and IT platforms at the two banks. The insurance and investment arms will provide the final £235m in cuts.

The new company will be called Lloyds Banking Group plc: the full statement is here (pdf).

Lloyds has appointed Mark Fisher as director of group IT & operations - he was previously at Royal Bank of Scotland but had been seconded to ABN Amro to oversee integration after it was bought by RBS.

Goldman Sachs and Barclays Capital refused to comment on this story. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story


Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.