Bank of England staff are on alert over possible job cuts at Threadneedle Street after the governor, Andrew Bailey, warned of tough decisions over the institution’s future cost base.
Sky News has learned that Mr Bailey informed Bank of England staff in a memo last week that it was examining costs in detail, although he did not specifically refer to the prospect of redundancies.
A source said the note was sent while Mr Bailey was attending the International Monetary Fund (IMF) meeting in Washington.
The precise wording was unclear Monday, but a source said it warned of “tough choices” that would have to be made as the bank accelerates its investments in new technology.
They added that managers had been informed that they expected to have to make savings of between 6 and 8% of their operating budget.
The Bank of England employed 5,810 people at the end of February, including just over 5,000 full-time, according to its annual report.
These figures were slightly higher than the previous year.
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The central bank’s levy-funded budget is expected to be £596 million for the current financial year.
The headcount figures include the Prudential Regulatory Authority, Britain’s main banking regulator, which is expected to have a new boss next year when Sam Woods steps down after two terms in the role.
A Bank of England spokesperson declined to comment on the contents of Mr Bailey’s note.
They also declined to provide details on the timing of previous rounds of layoffs at the bank.