Barclays Fires 15 Bankers And Withholds Annual Bonuses Ahead Of Holidays: Report

Rivals like Goldman Sachs and Bank of America reportedly offered partial bonuses to employees laid off late in the year, but Barclays opted not to follow suit

Barclays recently fired 15 bankers and traders in New York just before the holiday season. The UK-based bank also withheld annual bonuses, a key part of the employees' compensation, according to a report in The Times of India. The 15 professionals were part of 50 employees laid off last month, losing out on their expected bonuses. Investment bankers usually earn a $200,000 salary, with bonuses that can go up to $1 million, the report noted.

Tanvir Rahman, an attorney at Filippatos, criticized the move, saying a responsible employer would typically provide a pro-rata bonus for work completed. He described Barclays' decision as "cold-hearted."

Rivals like Goldman Sachs and Bank of America reportedly offered partial bonuses to employees laid off late in the year, but Barclays opted not to follow suit.

The dismissed bankers are reportedly considering legal action, with some contemplating lawsuits seeking over $10 million, arguing that bonuses are earned during the year and shouldn't be considered discretionary. However, Rahman cautioned that their chances of success may be slim, noting that "Banks often stipulate in their labour agreements that you must be employed at the time of the bonus to receive it," according to the report.

Some of the dismissed employees may also pursue arbitration through the Financial Industry Regulatory Authority (FINRA).

A Barclays spokesperson defended the layoffs, stating that the bank regularly evaluates its workforce to ensure it is investing in talent, meeting client needs, and positioning itself for long-term success. The layoffs are part of Barclays' broader three-year strategy to streamline operations and reduce its reliance on investment banking revenue. Despite this shift, the bank had been expected to increase bonuses in certain departments by up to 20 per cent due to a resurgence in dealmaking, according to the report.

This is not the first time Barclays has cut back on bonus distributions. In 2023, the bank reduced bonuses by 43 per cent as revenues declined, and last year, many bankers received no bonuses at all, the report noted.