- Bank asked about 100 equity staff to leave in January: people
- Original offer was below market standards, union says
Barclays Plc raised severance packages for a second time since it asked about 100 equity employees in Tokyo to leave the firm in January, people with knowledge of the matter said.
The bank’s Japanese securities unit is offering an additional three months’ pay, according to the people, who asked not to be identified because the discussions are private. The firm told employees who haven’t signed a resignation letter that they should do so by late June to avoid being dismissed, one of the people said.
The latest offer brings the packages to at least eight months of salary, still short of market standards in the nation, according to a labor union. Many analysts, traders and salespeople from the cash equities division declined to accept the original payments, which ranged from two to seven months. Barclays Securities Japan Ltd. boosted the amounts by three months in February, and made the latest increase after some employees negotiated with the firm through a union, the people said.
Kyota Narimatsu, a Tokyo-based spokesman for Barclays, declined to comment.
Severance pay in Japan over the past two years has typically ranged from 12 months to 36 months at overseas banks, according to the Federation of Foreign Bank Employees Union.
Some of the Barclays analysts and sales staff have found new jobs in Tokyo. Mizuho Financial Group Inc., Citigroup Inc. and Jefferies Group LLC are among firms that have hired them.
Tokyo employees aren’t the only ones seeking higher payouts. Former Asia Pacific Global Finance Chairman Jon Pratt is suing the bank’s Asia unit in Hong Kong for HK$18.9 million ($2.4 million) -- money he alleges he was owed when he exited the firm, court records show.
The job cuts were part of Chief Executive Officer Jes Staley’s plans to reduce investment-banking operations globally. The London-based bank is eliminating 1,200 positions worldwide and shutting securities operations across Asia, people with knowledge of the matter said in January.
Japan CEO Eiji Nakai broke the news to Tokyo employees that month. Nakai is set to leave the bank on June 30, a memo showed in March.