Barclays cuts several hundred investment bank jobs
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[June 03, 2014]
LONDON (Reuters) - Barclays
Plc has this week cut several hundred jobs in its
investment bank as part of its plan to shrink the
business by 7,000 staff over the next three years to
save costs, people familiar with the matter said.
The cuts will mostly be in the fixed income, currencies and
commodities (FICC) trading and markets businesses, rather than in
advisory and equities. FICC is the area that Barclays and several
other banks such as UBS AG are scaling back due to falling revenues
and tougher regulations.
The precise number of job losses was not known, but there will be
cuts in Asia, Europe and the United States, the sources said. The
latest cuts add to more than 400 already made by the British bank in
its investment bank this year.
Barclays Chief Executive Antony Jenkins last month reined in the
bank's ambitions to be a Wall Street powerhouse and said he would
cut about one in four jobs in the division, as part of a plan to cut
19,000 jobs across the bank.
"As stated on May 8, at the time of our strategy update, Barclays
plans to reduce the headcount of its investment bank by
approximately 7,000 over the course of three years," a spokesman for
"These reductions are in line with our commitment to a
higher-returning investment bank with an origination-led banking
strategy and a markets business focused on standardized, liquid
Jenkins is attempting to cut costs and improve profitability at the
bank. Trading revenues in FICC, especially interest rate trading,
have slumped in the past year amid a low interest rate environment
and banks have to hold more capital against the business, driving
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Shareholders were also angered when Barclays raised bonuses for
investment bank staff last year, despite a fall in profits.
(Reporting by Steve Slater; Editing by David Holmes)
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