Barclays to cut hundreds of investment banking jobs

Barclays Chief Executive Antony Jenkins Barclays chief executive Antony Jenkins is looking to revamp Barclays' corporate culture

Related Stories

Barclays plans to cut hundreds of jobs in its investment banking division as part of a restructuring, it has confirmed to the BBC.

The job cuts come on top of 3,700 layoffs announced early last year.

Chief executive Antony Jenkins is also expected to unveil new five-year financial targets next month.

He has been looking to improve profitability in the face of falling trading revenues and tougher regulations.

Mr Jenkins, who took over from Bob Diamond following the Libor rate scandal, plans to cut £1.7bn ($2.8bn) from annual expenses by next year.

The London-based bank is also restricting international travel to "essential" external meetings, in an attempt to control expenses.

Branch closures?

The bank is also considering closing branches to reflect the fact that more customers are now accessing financial services online and via mobile devices, although it denied reports that it would close 400 branches.

Barclays is to release its annual results on 11 February, but a spokesman said: "We have no plans to announce significant reductions to our UK branch network.

"We have consistently been clear that, over time, there will be fewer traditional branches as we move to provide banking services to customers where and when they find it most convenient.

"However, the branch network will remain an important part of our banking service and we will never leave a community without the ability to transact."

In November, the bank announced a pilot project to close four UK branches and move staff and banking services to nearby Asda stores.

Bank branches in supermarkets are common the US.

Job cuts

Barclays' investment banking division employs about 25,000 of the bank's 140,000 global employees.

Up to 400 senior managers, mostly in London and New York, are expected to be made redundant.

Last year, Barclays announced 1,800 job cuts in corporate and investment banking and 1,900 in its European retail and business banking.

Many major banks have been undergoing structural shake-ups due to the impact of the weak global economy and changing regulatory environment.

Earlier this week, Lloyds Banking Group said it would terminate 1,080 jobs as part of a business overhaul announced in 2011.

Co-operative Bank also announced that it would shrink its branch network following a recent £1.5bn capital-raising exercise.

banks graph

Mr Jenkins has been looking to reform some bank practices after Barclays was implicated in a series of scandals, including the manipulation of key interest rates.

The firm has since ended speculative trading in certain asset classes and reduced its investment banking pay.

During the earnings release next month, Mr Jenkins is expected to also lay out several objectives aimed at improving the bank's reputation.

This includes ways to restore public trust and increasing the number of woman in senior positions.

An earlier version of this story said Barclays had confirmed that it was closing 400 bank branches in the UK. The story has been changed since Barclays Head Office in London clarified its position.

More on This Story

Related Stories

More Business stories


Business Live

    06:32: GDP preview Radio 5 live

    Virginie Maisonneuve of asset manager Pimco is on Wake Up to Money talking about GDP. She expects 0.6% growth in this fourth quarter first estimate from the Office for National Statistics. GDP is forecast by a number of experts to have grown by 2.6% for the year, the same level as in 2007 and up from 1.7% in 2013.

    06:23: Market update Radio 5 live

    Virginie Maisonneuve of asset manager Pimco is talking on Wake Up to Money about the markets. They were mainly up yesterday. Minority parties taking power in Europe has "not been taken seriously" by the market she says.

    06:07: Greek election fallout Radio 5 live

    More from Yannis Zabetakis, a lecturer at the university of Athens, is on Wake Up to Money. Youth unemployment at 50% is another dangerous signal for the country, he says. He also denies Greece is a special case. While there's growth in Britain under austerity, the wealth gap is widening and there are more people in poverty, he says.

    06:02: Greek election fallout Radio 5 live
    A supporter of Alexis Tsipras, leader of Syriza left-wing party, holds the Greek and French flag

    Yannis Zabetakis, a lecturer at the university of Athens, is on 5 live talking about the debt burden on Greece. More than a million unemployed means paying off the debt is very difficult, he says. Employment prospects for his students are very poor and he recommends setting up an export company or going abroad. Salaries are going down and tax up, he adds.

    06:01: Matthew West Business Reporter

    Morning folks. Get in touch at ot tweet us at @bbcbusiness.

    06:00: Howard Mustoe Business reporter

    Good morning. At 09:30 we expect the first estimate for fourth quarter gross domestic product for the UK. There'll also be company results from 07:00. Stay with us.



Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.