Partly Cloudy

Partly Cloudy

max temp: 11°C

min temp: 5°C

ESTD 1874 Search

Banking: Barclays job cuts total rises to 19,000

09:00 08 May 2014

Barclays is to cut 7,000 jobs from its investment banking division, on top of 12,000 job cuts already announced across the group.

Barclays is to cut 7,000 jobs from its investment banking division, on top of 12,000 job cuts already announced across the group.

Barclays said today it is to cut 7,000 jobs from its investment banking division by 2016 as part of a strategy review.


The bank has already announced job losses across the group of 12,000 for this year, but this has been increased to 14,000 as a result of the investment bank changes announced today. It brings the total cuts by 2016 to 19,000.

It comes two days after Barclays announced that first quarter earnings from the division fell by half, meaning profits at the group slid by 5%.

About a third of the investment bank job cuts announced today, more than 2,000, will be in the UK.

The strategy review, described by chief executive Antony Jenkins as a “bold simplification” of Barclays, will also see it hive off its European retail banking business into a so-called “bad bank”, comprising £115 billion of “non-core” assets.

This will include all its customer branches in Portugal, Spain, Italy and France as well as a chunk of its investment banking operation including fixed income, currencies and commodities (FICC), plus emerging markets products.

Barclays largely attributed its first quarter profit fall to its FICC unit. The non-core unit groups together businesses which do not fit the bank’s “strategic objectives” or profitability criteria under the review and the bank will “look to exit or run down these assets over time”, it said.

Mr Jenkins said: “This is a bold simplification of Barclays. We will be a focused international bank, operating only in areas where we have capability, scale and competitive advantage.

“In the future, Barclays will be leaner, stronger, much better balanced and well-positioned to deliver lower volatility, higher returns and growth.”

The changes will dramatically shrink the importance of the investment bank, which currently accounts for more than half of Barclays’ size, to no more than 30% by 2016.

This division employed around 26,200 staff - around 10,000 in the UK - at the end of last year, but this had already shrunk to about 24,000 over the start of 2014.

Barclays did not give a breakdown of where the axe would fall when it announced 12,000 job cuts earlier this year.

But with more than 2,000 gone from the investment bank this year already and 7,000 more announced today, the investment bank looks likely to have shrunk by 10,000 or more, from its size at the end of last year, by 2016.

Highly paid staff at the division have been at the centre of controversy at Barclays, which last month received a bloody nose from shareholders as it hiked the staff bonus pool by 10% to £2.38 billion last year despite profits falling by a third.

The Institute of Directors has complained that this was nearly three times the £859m paid out in dividends to shareholders.



Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

The Leading Lives team receive their tropy at the Social Enterprise UK Awards in London.

Ipswich-based Leading Lives has been named Health and Social Care Social Enterprise of the Year at the Social Enterprise UK Awards.

The Hot Off The Press premises inTacket Stret, Ipswich, which the company has vacated after 25 years.

A printing company which has operated from the centre of Ipswich for 25 years has relocated – to a purpose-built log cabin in the owner’s garden.

Elaine and Nigel Bowen of Vanguard Communications.

Two businesses which receive support from Suffolk enterprise agency Menta have received Small Business Sunday awards from entrepreneur and former BBC Dragons’ Den star Theo Paphitis.

Wayne Seddon from The Bridge House in London receives his Adnams Pub of the Year award from chief operating officer Karen Hester.

Southwold-based Adnams has named The Bridge House, near London’s Tower Bridge, as its Pub of the Year.

Georgi Rollings, left, and Emma Lawrence of Starfish Accounting.

An Ipswich based provider of online company secretarial software has reached the landmark milestone of having 10,000 users.

Robert Hughes, managing director of Hughes Electrical, and Andy Yallop, store manager, at the company's new branch in Bury St Edmunds.

Hughes Electrical has opened the doors of its new store in Bury St Edmunds following a £200,000 investment which has also created six new jobs, doubling the size of its workforce in the town.

A file picture of the Sanofi factory in Haverhill.

More than 50 jobs are to be axed at the Haverhill site of pharmaceutical group Sanofi.

Barclays has been fined £72m by the Financial Conduct Authority.
Photo: Jonathan Brady/PA Wire

Banking giant Barclays has been fined £72million by the City watchdog for failing to handle potential financial crime risks relating to a £1.88billion transaction for ultra high-net-worth clients.

Ipswich council leader David Ellesmere at the former sugar beet factory site off Sproughton Road.

A new Enterprize Zone involving 10 development sites across East Anglia, with the potential to create 18,500 jobs, was announced by Chancellor George Osborne today.

Natalie Moloney, of Woodbridge events firm Pink Lemonade Productions.

An entrepreneur is up for a fifth business award since her event planning company launched last year.

Most read

Most commented

Topic pages

Local business directory

Our trusted business finder

Property search

e.g. Oxford or NW3
Powered by Zoopla

Digital Edition

Read the East Anglian Daily Times e-edition today E-edition

Great British Life

Great British Life
MyDate24 MyPhotos24