Barclays

Barclays Cuts 1,200 Jobs as ‘Dead’ Bitcoin Thrives

Major financial players are feeling the effect of the ongoing financial crisis and are forced to cut down staff numbers all over the world. Barclays, one of the biggest banks in the world, has announced they will be cutting at last 1,200 jobs. Especially their Asian branch, which will be hit the hardest by this decision, as 230 employees will be let go in the next few months. While this debacle is going on, the Bitcoin and blockchain industry is bringing more jobs to people worldwide.

Also read: Bitcoin Network Hash Rate Closing in on One Quintillion

Barclays Struggles to Make Ends Meet

Barclays

Whenever there is little to no economic growth to speak of for an extended period, it will only be a matter of time until established financial players will need to cut their losses. As is the case with any business in the world, the first cuts will be made in their workforce, as Barclays announced roughly 1,200 people will lose their jobs this year.

This fresh rounds of cuts — a large portion of which will happen in Asia — is a result of the global struggle faced by traditional finance. Things are so dire that Barclays will have to halt operations in Taiwan, Malaysia, Australia and South Korea this year. However, the bank is not planning to move its prime brokerage and derivatives business elsewhere, as that branch will remain active in Asia for the time being.

But even the Western World is not spared, as Barclays employees fear for their jobs in London and New York. Furthermore, the plan is to shut down the Russian office completely, adding to the list of jobs to cut in 2016. However, none of these actions should come as a surprise, considering how Barclays has been involved in various scandals. In a way, one could say this bank has dug its own grave, and now has to rest in it.

Some financial analysts feel how these decisions are made prematurely, and the Barclays chairman should exude more patience when it comes to steering a sinking ship around. Every bank in the world is currently struggling to make ends meet, and downsizing at such a critical time might not be the best decision.

That being said, employees are not the only ones who should be worried about working for Barclays. There are plans on the table to cut the 2015 bonus pool by 10 percent or more. Although the investment bank has yet to make an official announcement on compensation, executives are considering delaying bonuses one month later than normal this year.

It is not the first time Barclays bonuses have dropped, as the same happened in 2014. Back then, the bonus pool dropped by a whopping 24%, indicating how worrisome the future of traditional finance looked. It appears as if Barclays executives have not learned their lesson. Otherwise the bonus pool for 2015 would not have dropped by an additional 10 percent.

Bitcoin & Blockchain Job Creation Soars

Barclays

While traditional financial players are forced to make harsh decisions, the world of Bitcoin and blockchain sees steady growth. More and more companies around the world are focusing their attention on this new breed of financial services, which leads to a larger demand for employees.

It is no secret how the blockchain will make traditional finance more streamlined, secure, and cost-effective. The legacy system — used by Barclays and other banks — is outdated, and offers little to no room for future innovation. As a result, financial institutions can not keep up with the needs and desires of their customers. The time has come for new businesses to take their place, and the blockchain will play a big role in that process.

In fact, people who are experienced in the financial sector will have a good chance of landing a job in the world of blockchain and Bitcoin. Even though these concepts are operating outside of the financial world as we know it, there’s always room for a fresh set of eyes and advice from people knowledgeable in traditional finance. Those Barclays employees on the verge of being cut might want to start sending resumes to Bitcoin companies in their region.

What are your thoughts on the actions taken by Barclays? Is it too late to stop the ship from sinking? Let us know in the comments below!


Source: Bloomberg

Images courtesy of Barclays, Shutterstock