The Bank of England said it will cut as many as 100 jobs as part of a review of costs after it took on expanded responsibilities.
The move comes after Deloitte LLP was hired to review costs and is part of a plan to save about 18 million pounds ($29.6 million) by the financial year 2015/16, the London-based central bank said in an e-mailed statement today. The staff reductions will be in the Central Services support division and will free up funds to invest elsewhere.
The BOE said in October that it had hired McKinsey & Co. and Deloitte to review its resources and identify savings after it gained unprecedented powers to regulate the financial industry last year. McKinsey is working on a strategic plan examining the BOE’s priorities for the coming years, the conclusions of which will be announced “in due course,” the central bank said.
Today’s changes “will provide new opportunities for some staff, as they will move to new roles in the organization,” the BOE said in the statement. “A number of other jobs will not be filled as staff retire or move on. It is, however, envisaged that there will be between 80-100 redundancies, subject to staff consultation.”
The BOE is “working closely with the bank’s union to ensure that affected staff will receive support to find alternative employment,” it said.
Central Services runs operations including information technology, human resources, business continuity, private offices, and legal services.
The announcement comes seven months after Governor Mark Carney took charge of the central bank, when he made the McKinsey strategic plan one of his priorities. The two reviews have been led by Chief Operating Officer Charlotte Hogg, a former McKinsey employee, who started on the same day as Carney.
In April, the BOE’s then-finance director, Warwick Jones, said information-technology costs had been higher than forecast in the previous fiscal year. That was partly due to the integration of the Prudential Regulation Authority, and Jones said it would be “important to reverse” that as the merger was completed.
Unite, a labor union representing the bank’s staff, “will strongly oppose any compulsory redundancies,” it said in an e-mailed statement today.
“Barely a day has passed this week without an employer in the finance sector announcing cuts to its vital staff,” Dominic Hook, Unite national officer, said in the statement. “The BOE should be setting an example to other banks, not behaving in the same imprudent manner that others have been.”
To contact the reporter on this story: Scott Hamilton in London at email@example.com
To contact the editor responsible for this story: Craig Stirling at firstname.lastname@example.org