Top Firm's Cost-Cutting Memo To Staff

Pair Of Scissors

Many of you will already have had one of these from your firm. If you haven't, expect something similar sometime soon.

Dealbreaker has a copy of a memo said to have been sent to certain IBD staff over at Barclays Capital earlier this week on the subject of '4th Quarter Savings Initiatives' (cost cutting to you and me).

Here's the post:

'Date: 3 October 2011
Subject: 4th Quarter Savings Initiatives

We have done a great job this year driving our business forward and delivering on revenue and market share. Importantly, our division has been vigilant on costs and we have been able to manage our overall cost structure aggressively. However, as you are all aware, we continue to operate in a difficult environment, and we have more to do on cost savings.

Many of you have been helpful in providing us with ideas on how to save on costs. Some of you were recognized by the firm for suggestions you made in the recent survey issued by Skip McGee, and we will be recognizing a number of you in the next few weeks for your suggestions on how IBD can save additional costs.

In addition to the steps we have taken so far this year, below are a number of actions we will be taking for the 4th Quarter. Each will be revisited at year end. In the normal course, business demands may necessitate exceptions. All requests for exceptions must be sent in the first instance by email to your group COO and will require written pre-approval by Richard Blackburn.

* Limit Barclays employees travelling to the same meeting to essential attendees only

* Suspend internal and non-reimbursable travel (i.e., conferences, training, recruiting trips not charged to central recruiting, attendance at internal meetings such as ECCC)

* Suspend Analyst and Associate Travel (exceptions to be submitted by Group Head)

* Suspend Business Class Travel for flights under 4 hours, in line with our peer group

* Fixed economy is required, but COOs may approve requests for flexible economy if the cost differential is < £50

Only essential changes should be made to fixed economy bookings

* Suspend use of out-of-policy flights and hotels

* If it is necessary to arrange a business class ticket out-of-hours, the traveller must send an email justification to their COO

* Late night car service will be available one hour later (will begin at 22:00 rather than 21:00), and the following policies will continue to apply for London-based staff:

ComCab (i.e., taxi) services are only reimbursable for late night working if journeys are fewer than 5 miles

Addison Lee cars should be pre-booked in all other instances and are only authorised to transport you to the nearest mainline station unless it’s later than 23:00 or you have pre-approval from your manager

Local taxis should be used and individual journeys made in all instances whilst travelling overseas (i.e., cars should not be booked for blocks of time); where this is not practical (e.g., for security reasons) exceptions must be arranged with preferred vendors via the local office

Late night meal programs, including SeamlessWeb and reimbursement for purchases from other vendors, will be available one hour later (will begin at 21:00 rather than 20:00; however, no change to 20:00 delivery start time for SeamlessWeb). Alternatively, you may order a meal before 21:00 if you have worked 12 hours straight on any regular workday

Weekend / holiday meals will be limited to one per 6 hours of work completed

Suspend reimbursement for internal, group meals and entertainment (both at normal office and while travelling)

Suspend reimbursement for expenses exceeding £10 when submitted without receipts

Finally, we ask that you continue to maintain strict discipline tracking expenses to clients and projects in order to strengthen our client expense recovery efforts'.

image: © Ivy Dawned

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