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

Too embarrassed to ask: what is short selling?
Too embarrassed to ask

Too embarrassed to ask: what is short selling?

Short sellers are often accused of unfairly driving share prices down to make a quick buck. But short selling is a perfectly legitimate – if risky – t…
26 Jan 2021
Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin does consume a lot of energy – but here’s why it’s worth it
Bitcoin

Bitcoin does consume a lot of energy – but here’s why it’s worth it

Some people question bitcoin’s legitimacy because it uses huge amounts of electricity to maintain its network. But that’s not a failing, says Dominic …
27 Jan 2021
Joe Biden’s spending spree will lift American spirits and markets – but it comes with a sting in the tail
US stockmarkets

Joe Biden’s spending spree will lift American spirits and markets – but it comes with a sting in the tail

New US president Joe Biden is planning to throw trillions of dollars in stimulus at his country’s economy. Markets will love that. But it comes with a…
25 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021