Barclays could shed 500 back office staff as the bank has decided not to renew a business process outsourcing (BPO) contract with Siemens.

The financial firm is not renewing its contract with Siemens, which it has had since 2000 and which runs out on 30 September. Under a multi-million pound contract, Siemens currently manages the Barclays retail banking back office from two sites in Glasgow and Beeston.

In a statement, the bank confirmed it is in "ongoing discussions with Siemens" regarding the contract that ends this year, and has decided not to renew the work but to move it back in-house.

The bank said it does not plan on "continuing to base the current activity at the Glasgow and Beeston sites" and staff had "been advised that once the activity is integrated back into Barclays, their roles will become redundant in the future".

The bank is also considering extending the contract another twelve months as it transitions the work back into Barclays.

"However, regardless of our decision we will work closely with Siemens to minimise any potential job losses by looking at redeployment options across Siemens operations and through voluntary redundancies."

Last month the bank came under fire from unions as it deliberated on plans to close an office in Poole, Dorset, and cull 1,000 back office jobs. The bank also announced plans to offshore 1,800 IT jobs over the next three years, from its global infrastructure and service delivery wing.

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