Igor Kim, who, with a number of co-investors, became the owner of Barclays Bank a month ago, started reorganizing his new business. Since the new proprietors are not prepared to make up for the bank’s losses by capital inflow as the British parent enterprise Barclays used to do every year, the bank will start with cutting down on expenses. For one, about a quarter of the employees will be made redundant, while the pay of the remaining staff will be cut by 20%, Kommersant reports.

Serious personnel changes began at the bank as soon as the new owners arrived in late October, a few of Barclays’s former employees (some top managers among them) told the newspaper. According to one ex-top executive, the new management said it was necessary to lay off two to three hundred people by the end of the year (the bank employed slightly fewer than 1,000 employees at the time of the sale) and to reduce the remaining personnel’s salaries by 20%. Another former top manager confirmed this report, adding that very few people kept their jobs in the top and middle echelons as well.

‘Over eighty people have already been made redundant,’ yet another source close to the bank told Kommersant.

The new stockholders’ strategy can be explained be the fact that they intend to take the business out of the loss pit by cutting costs, one of the bank’s former employees reports. Prior to this, the parent enterprise Barclays Group used to compensate its Russian daughter enterprise’s losses by capital inflow.