Partly Cloudy

Partly Cloudy

max temp: 17°C

min temp: 13°C

ESTD 1874 Search

Banking: Barclays to cut 7,000 UK jobs

09:34 11 February 2014

Antony Jenkins, chief executive of Barclays.
Photo: VisMedia

Antony Jenkins, chief executive of Barclays. Photo: VisMedia

Copyright: VisualMedia/Justin Thomas

Barclays today revealed that it is to axe between 10,000 and 12,000 jobs this year, including 7,000 in the UK.


News of the banking giant’s plans to cut its workforce, which currently totals around 140,000, came alongside deatails of a 13% increase in its bonus pool for 2013 to £2.4billion despite a 32% fall in underlying annual profits.

Barclays, which said that around half of the planned job cuts had already been announced to staff internally, added that it also planned to cut 820 senior manager roles, including 220 managing directors and 600 directors, with its investment banking arm to account for around 400 of the senior job losses.

The group said its investment banking staff would share £1.6bn in bonuses, representing an average payout of £60,100 per employee in the division.

Chief executive Antony Jenkins said the bank is “in a better position than we have been for many years”.

But yesterday it took the unusual step of announcing its full-year profits a day early, confirming that underlying profits fell to £5.2bn in 2013, below consensus forecast in the City for around £5.4bn, after details were apparently leaked.

The bumper staff payout comes in spite of another tough year for the group, in which it added £2bn to its bill for customer mis-selling scandals in 2013 and tapped shareholders for £5.8bn in a rights issue in the autumn.

Mr Jenkins defended the increase in the staff incentives, saying the group believes in “paying for performance and paying competitively”.

The Barclays boss has already waived his entitlement to a bonus for 2013 worth up to £2.75million, citing “very significant costs” suffered last year over a series of scandals and its cash-call on shareholders.

Its increase in bonuses for the group’s 26,200 investment banking employees saw its ratio of compensation to income rise to 44% from 40% in 2012, although more than two-thirds of handouts are deferred. However, pre-tax profits in the division slumped 37% to £2.5bn over the year.

Barclays said its overall underlying profit for the final three months of 2013 was significantly lower, plunging by £1.2bn quarter-on-quarter to £191m, after being dragged lower by factors including £331m of previously announced litigation and regulation penalties.

It was also knocked by costs relating to its so-called Project Transform overhaul. Mr Jenkins launched the review of culture and practices in the wake of the bank’s £290m Libor-rigging fine, which led to the resignation of former boss Bob Diamond.

Overall bottom line profits, however, rose to £2.9bn in 2013 from £797mn in 2012.

Mr Jenkins said paying for talented staff was in the “best interests” of shareholders. He told the BBC Radio 4 Today programme: “The profits were down principally because we were taking a number of actions to reposition Barclays to become the go-to bank and we announced those actions a year ago.

“In terms of the compensation number, it is up 10% but at Barclays we have two principles around that number. The first is that we pay for performance and the second is that we pay competitively.

“We employ people from Singapore to San Francisco. We compete in global markets for talent. If we are to act in the best interests of our shareholders, we have to make sure we have the best people in the firm.”



A queue outside of a Greggs store.

Baker Greggs warned the new national living wage will put pressure on the group to raise the prices of its pasties and sausage rolls.

Home Secretary Theresa May arrives to deliver her speech at Manchester Central during the Conservative Party conference.

Theresa May faced an angry backlash from business leaders and refugee charities for falsely “vilifying” immigrants in a bid to boost her own political career.

Amanda Bond, Visit Suffolk brand manager

The value of Suffolk’s tourism industry has grown to £1.85billion a year, according to new figures, with the total, for the 2013 season, represents a rise of £50million over 2012.

Pigs Gone Wild campaign project leader  Norman Lloyd with the organisation's own pig sculpture.

Businesses are being urged to get behind a public art initiative which aims to raise £100,000 for the St Elizabeth Hospice in Ipswich.

The presentation of the Gold award in the Community Relations Campaign category to Essex County Council at the CIPR Anglia Thames & Chiltern Pride Awards 2015

Photo:  Steve Pope - FOTOWALES

Public relations professionals across East Anglia have received recognition in the regional round of the 2015 PRide Awards.

New report on prosperity in seaside towns

New research has highlighted the importance of entrepreneurs in helping to revive seaside towns that have fallen into decline and unlock further potential in those already prospering.

Dr Aled Jones, Anglia Ruskin University.

The director of Anglia Ruskin University’s Global Sustainability Institute (GSI) is in the running to be named the greenest academic in the UK.

Dan Poulter with employees at B&Q

A Suffolk MP has said he will do what he can to try and prevent a B&Q store closing down with the potential loss of around 100 jobs.

Helen Drage,  co-founder of Drage & Tozer Opticians.

Sudbury opticians firm Drage and Tozer, founded in 1995 by Helen Drage and Sandra Tozer, has celebrated 20 years in business by expanding into new premises.

Val Carrol, director of healthcare at Beckett Financial Services, receives the company’s Commendation at the Investment Life & Pensions Moneyfacts awards from comedian Tim Vine.

Bury St Edmunds-based Beckett Financial Services has been recognised by a national financial services publication for delivering outstanding levels of customer satisfaction to its healthcare clients.

Most read

Most commented

Topic pages