BARCLAYS is still a “core business” in Poole despite more redundancies, the council leader says.

In total, 126 people could lose their jobs after the company announced it was outsourcing its pensions administration department.

Poole Borough council leader Cllr Elaine Atkinson said: “Barclays is embedded in our town. We know from the past where Barclays has reconfigured the organisation that it has a really efficient support service to help people be re-employed or moved over to the outsourced party.

“Barclays are still recruiting in Poole. They are still a core business and are growing.

“Outsourcing is a healthy way of maintaining business in these austere times.

“But if you’re one of those 126 people, you are of course not very happy at the moment.”

Peter Scott, chief executive of the Dorset Chamber of Commerce and Industry, said: “Corporate decisions, however well-based commercially, can result in unpopular outcomes.

“Whenever a significant local employer takes action such as this, as well as impacting the individuals directly at risk it adds to the uncertainty for the rest of the workforce.

“The economy remains fragile, but this does not necessarily pave the way for any further pressures on local employment prospects.”