Almost 3,000 British job losses were announced Wednesday by Barclays bank, car maker Jaguar Land Rover and music retailer Zavvi – dealing a blow to government efforts to stem rising unemployment and support businesses as Britain heads deeper into recession.
Job cuts across all industries are being announced daily, with one industry group predicting that losses as a result of the global financial crisis will reach one million some time in 2010.
Barclays PLC was the latest major banking institution to announce big layoffs, revealing Wednesday it plans to cut 2,100 jobs in its retail and commercial banking units, adding to redundancies of the same size in its investment banking arms announced Tuesday.
While many of the initial job cuts came in the financial services industry, redundancies are now rolling in from sectors across the economy.
The retail sector has been pushed to the front line as consumers, worried about how far the economy still has to sink, curtail spending.
Music and entertainment retailer Zavvi, one of the many companies to file for bankruptcy protection in recent months, said Wednesday it plans to close another 18 stores and cut 353 jobs, bringing its total so far to 731.
The impact on the car manufacturing industry was underscored by an announcement from Jaguar Land Rover saying it would axe 450 jobs, including 300 managers.
“Obviously, the government is disappointed to hear this news. All company job losses are, of course, regrettable,” said Prime Minister Gordon Brown’s spokesman Michael Ellam. “Jaguar Land Rover’s decision today reflects the continued downturn in the market and that is a reflection of what is happening more generally in the global economy,” he said.
The government has introduced a flurry of measures in the new year to try to mitigate the downturn.
On Monday, Brown said he was creating a new jobs program which will offer incentives, including money, to get companies to hire people out of work.
That was followed up Wednesday with a plan to help small- and medium-sized businesses through the credit crunch by offering guarantees on bank loans. Up to 20 billion pounds (about $29 billion) in loans will be guaranteed – with the government backing about half that sum and banks assuming the risk for the rest.
Tony Woodley, joint leader of leading union Unite, said the government was making some progress, but added those measures alone were not enough.
“So far the greedy bankers have been propped up, but they have done little or nothing for industry,” Woodley said, referring to the government’s 37 billion pound ($50 billion) bailout of the banking industry last year.