Two more banks bow to the inevitability of change

Barclays is expected to close about 200 branches next year in a concerted effort to cut costs and shift emphasis to new business opportunities.

Barclays currently operates the second largest branch network, behind Lloyds TSB. Slimming down has been underway for some time, but the pace is set to pick up soon. At the same time, the bank has said it intends to invest more elsewhere, including in telephone and internet services.

Northern Rock, the UK's 12th largest bank, is also planning closures. 29 out of its 105 branches are to go by the end of the year.

This means job losses totalling about 250, but spending plans for telephone-based services will create 400 new jobs. Northern Rock also intends to take on more staff at its Newcastle head office to handle e-commerce operations.

Chief executive Leo Finn says: "We are changing shape to meet a demanding future. Our size and focus allow us to respond early and quickly to changing markets and customer preferences."

Elliott Chase