max temp: 16°C

min temp: 15°C

ESTD 1874 Search

UK: Barclays to axe 3,700 jobs as pre-tax profits plunge

09:34 12 February 2013

Barclays today announced its annual results for 2012, together with details of its bonus payouts and job cuts

Barclays today announced its annual results for 2012, together with details of its bonus payouts and job cuts

SCANDAL-hit banking giant Barclays said today it was axing at least 3,700 jobs under a strategic overhaul, but revealed it was paying £1.85billion in bonuses to staff.


Chief executive Antony Jenkins is shutting the bank’s controversial Structured Capital Markets tax advisory division and said 1,800 jobs would go in corporate and investment banking and another 1,900 across its European retail and business arm as part of a plan to slash costs by £1.7bn. All of the 1,900 retail job cuts involve the bank’s European arm, with redundancies across Spain, Italy, Portugal and France.

Nearly £2.5bn of cash set aside to cover mis-selling compensation claims contributed to a plunge in pre-tax profits to £246million in 2012 from £5.9bn the previous year.

Its bonus pot will mean each employee gets £13,300 on average, with an average of £54,100 for investment banking staff, although the pool is lower than the £2.2bn paid out last year. Barclays said 1,600 jobs have already been cut in the investment banking business since the start of the year.

Mr Jenkins, who was appointed in August after Bob Diamond quit in the wake of the bank’s £290m Libor rigging settlement, insisted bonuses had been reduced after last year’s string of reputational blows. He said the bank’s compensation ratio - pay as a proportion of revenues - had fallen to 38% from 42% in 2011.

Mr Jenkins announced he was waiving his bonus for 2012 earlier this month, but the overall staff bonus pot for 2012 is likely to stoke further controversy given the recent series of scandals to rock the group.

Barclays said profits rose 26% to £7.05bn on an underlying basis, with mis-selling provisions stripped out and not including movements in the value of its own debt. Bottom line profits were heavily impacted by mis-selling provisions, with £1.6bn put by to cover claims relating to payment protection insurance (PPI) and £850m for interest rate swaps sold to small businesses.

It said the average PPI claim stood at £2,750, while it added the group sold around 4,000 interest rate swaps to small businesses of which around 3,000 were liable to potential mis-selling claims.

Unite national officer Dominic Hook said: “The chief executive’s promise of a culture shift at the bank is to be welcomed but we need to see more progress to address the gap between the highest paid and the lowest paid staff at Barclays, which is huge.

“It’s shocking but true that the starting salary at Barclays is just £13,500 a year, making some workers at the bank eligible to claim tax credits. With pay negotiations due to start soon, Unite will be expecting the bank to reward its staff fairly for their contribution to the success of the bank.”



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.

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.

Meadows Montessori School pupils Spencer, Luke and Ben, aka the Flower Pot Men, with The Apprentice 2014 winner Mark Wright who presented their trophy for winning the Best Community Engagement category of the Fiver Challenge Awards , supported by Virgin Money.

Pupils from the Meadows Montessori school in Ipswich have been named among the winners in the Fiver Challenge, run by the Young Enterprise programme.

From left, Michael Francis, store manager, Colchester, Robert Smith, dealer principle, Colchester and Norwich, and  Emmanuel Greffier, store manager, Norwich with the Bang & Olufsen UK Partner of the Year trophy.

The team at the Bang & Olufsen store in Colchester is celebrating after beating off competition from 60 other dealerships to be named as the audio equipment firm’s UK Partner of the Year.

Kelly-Anne Byres of Poppy Nursing and Care Services.
Picture: Stephen Waller  www.stephenwaller.com

Five businesses and organisations from Suffolk and north Essex have been named among the finalists in the 2015 East of England Business Champions awards.

The Nestle Purina site in Sudbury

A Sudbury pet food factory is under increasing pressure to tackle foul odours as it is revealed an environmental regulator recorded 40 stench complaints since last month.

Ipswich Building Society general sales manager Jo Leah and her friend Libby Smith, also from Ipswich,preparing for their charity challenge involving a 100km trip down the Zambezi River.

A executive from Ipswich Building Society will today be starting a challenge to travel 100km along Africa’s Zambezi River in aid of a local charity.


Fairline testing facility at Ipswich.

The new owner of Fairline Boats has expressed confidence in the business, despite laying off more than 100 of its production staff.

Most read

Most commented

Topic pages