Barclays 1 billion pounds ($1.25 billion) lay off.

Barclays (BARC.L) is developing measures to save as much as 1 billion pounds ($1.25 billion), which may entail eliminating as many as 2,000 people, mostly in the British bank’s back office.

Proposals to increase Barclays’ profitability are being reviewed by managers under the direction of Chief Executive C.S. Venkatakrishnan, also known as Venkat in the bank. According to the source, if they were fully implemented, 1,500–2,000 jobs might be eliminated.

On Thursday, a Barclays representative declined to comment.

According to the source, the proposed cost reductions would mostly affect Barclays Execution Services, also referred to as “BX” internally. They would also contribute to the group’s overarching goal of cutting costs by up to 1 billion pounds over a number of years.

Although Barclays has cut personnel and bonuses in its retail and investment banking divisions in an attempt to cut costs, the company has not previously disclosed its plans to reduce BX or the possible savings.

BX was established in 2017 with the goal of streamlining support operations for the bank’s two primary business segments, UK retail banking and worldwide. It also aimed to apply post-crisis risk management regulations and get rid of redundant work.

About 7% of the bank’s core yearly operational expenses of 15 billion pounds in 2022 would be covered by Barclays’ 1 billion pound cost-saving aim.

According to the insider, Barclays may choose to prioritize layoffs in other departments while continuing the BX headcount discussions.

Both BX’s expenses and workforce have increased dramatically in recent years. According to regulatory filings, its personnel increased from 20,000 at the end of 2017 to around 22,300 at the end of 2022, meaning that it currently employs over 25% of Barclays employees.

Concurrently, BX’s yearly personnel expenses have increased from 1.8 billion pounds to 2 billion pounds.

Venkat is under pressure to come up with a new plan of action during an investor presentation in February, or else his book value at Barclays will continue to plummet.

The seasoned banker has had to deal with the consequences of a trading error that cost the bank hundreds of millions of dollars ever since he became CEO.

In addition, he must fight a protracted battle to keep the investment bank at Barclays morale up, as a talent flight is impeding efforts to take on European rivals like Deutsche Bank (DBKGn.DE), BNP Paribas (BNPP.PA), and UBS (UBSG.S).

Since Venkat assumed leadership on November 1, 2021, the share price of Barclays has decreased by 26%, while Deutsche and HSBC (HSBA.L) have seen slight increases in value.

According to a second person in the division who spoke to Reuters, managers across teams at BX have been operating with essentially frozen budgets this year and have been instructed to cut expenses by 2024.

In anticipation of its presentation on February 20, which is viewed as a crucial chance for the bank to persuade shareholders that it has a strategy to increase its valuation, Venkat said on October 23 that Barclays will begin additional restructuring.

In October, Venkat stated that Barclays is “evaluating material structural cost actions” following the company’s dismal third-quarter results.

Boston Consulting Group and Barclays have been collaborating on a strategy assessment that aims to determine which aspects of the company should be sold or reduced and which should be invested in.