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Report: Barclays' cost-cutting plans complicated by falling attrition rate

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Report: Barclays' cost-cutting plans complicated by falling attrition rate

Barclays Plc is being forced to rework plans to cut costs by £1 billion after staff attrition rates fell to 10% amid fears that changing jobs may lead to relocation from London post-Brexit, Bloomberg News reported, citing "people familiar with the trend."

Staff are reportedly concerned that should they move to a bank with weaker ties to London, they may end up having to move out of the city.

The 12-month rolling attrition rate at the bank fell to 10% in October 2017 from 12% in October 2016, the people said, adding that the rate was 8% for London. In the technology and operations division, the attrition rate has dropped to 10% after sitting at 13% for at least three years, the people said, requesting anonymity for citing private data.

One reason for the drop has been that the bank has been less committal than rivals about moving operations out of London, having so far said only that about 150 people will shift to the bank's hub in Dublin, the people said, citing an informal staff survey. Another is Barclays CEO Jes Staley's decision to make the lender technology-driven, which saw a 30% increase in the number of managing directors in operations and technology.

This will see the lender's wage bill inflate in the short term, although it is expected to fall as technology replaces low-skill jobs over the longer term, one of the people said.