Barclays expected to cut 2,000 jobs

Barclays is reportedly set to announce its plans to cut 2,000 jobs in its investment bank early next year.

Barclays is reportedly set to announce its plans to cut 2,000 jobs in its investment bank early next year.

The British banking giant is preparing to axe positions as part of a broad restructuring of the company, according to reports Thursday.

It is a fairly insignificant scale-back for the company which has about 23,000 full-time employees its total investment-banking workforce.

The news comes amid a number of global banking cut-backs with UBS AG and Citigroup revealing more than 20,000 job cuts in recent weeks.

Deutsche Bank, which has also made investment banking cuts, raised the target price of Barclays from 300p to 360p.

Barclays executives are expected to recommend cuts between 1,000 to 2,000 jobs in mainly Asia and continental Europe while protecting the bank's strong US and UK branches.

However there are some executives insisting on a more assertive line of action saying the bank can afford to shrink further in some areas, sources told The Wall Street Journal.

It is also understood the cuts may be the beginning of a larger number of job reductions throughout the company.

Antony Jenkins, who took over as Chief Executive in August from Robert Diamond following an interest-rate scandal, has been conducting detailed reviews of the business as part of an overhaul which is set to be announced next February.

Hector Sants, the former chief executive of the Financial Services Authority, is set to join the bank in January as the head of compliance in an effort to help improve the bank's reputation.

The jobs cuts and the final number are yet to be formalised by Jenkins and the board of Barclays.

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021