Barclays Bank may close a further 60 branches in Portugal and reduce the staff head count by 350 to 400 jobs.
According to news agency Lusa the company's third plan in three years has been approved by London and will be put into action in next few weeks with a completion date set for the end of the year.
Negotiating with unions to cut up to 400 jobs will take up management time while Barclays is losing cash as depositors withdraw funds due to uncertainly and the fear of more dirty tricks from the banking sector.
On May 8 this year, Barclays Bank announced a global restructuring plan with the loss of 14,000 jobs scheduled for 2014, the closure of various operations several countries and the creation of a vehicle that combines the unprofitable activities of the group including the Iberian high street banking business.
The bank has sought to sell or liquidate unprofitable areas of operation and to reduce from 147 the number of branches in Portugal leaving 87 at the year end if the plan goes smoothly.
A liquidation of the business, according to the bank's PR consultant in charge media relations at Barclays Portugal, is not on the cards as the bank's branch closure programme is "a rational measure to control costs, and several banks in the Portuguese market are doing it."
"We continue to actively manage and protect the business in Portugal and to ensure we provide a quality service to our customers," said the authorised spokesman for Barclays Portugal.
In February this year Barclays posted profits down 42% but even this did not stop €2.8 billion being shelled out in bonus payments to directors and staff while 7,000 staff lost their jobs in the UK alone, of which 820 were managers.
Meanwhile, Barclays in the UK today has been fined a record £38m by the City regulator for failing to keep its clients' assets separate from its own.
The fine comes three years after Barclays paid out £1.1m for a similar offence and today the UK’s Financial Conduct Authority said the bank's investment arm had put £16.5 billion of clients' funds at risk between November 2007 and January 2012.
"Clients risked incurring extra costs, lengthy delays or losing their assets if Barclays had become insolvent," the FCA commented.
The Barclays Portugal statement read as follows:
“Barclays Portugal Retail Operation was included in a non-core division by the Group in May. We continue to actively manage the business, protecting the franchise, and ensuring we deliver high-quality service to our customers and clients. If in a certain moment this means to reorganise the Retail Operation in Portugal, we will do so, always treating all involved with respect, managing the process with care and informing Colleagues, Customers, Regulators and the Press in the right moment.
