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 The harsher-than-expected cuts are among the most sweeping by an
investment bank in recent years and follow similar moves by other
European lenders seeking to cut costs in a tough global environment
for banks.
Barclays will shut its investment banking businesses in countries
including Australia, Indonesia, Malaysia, Philippines, South Korea,
Taiwan and Thailand, an internal memo seen by Reuters showed, with
those markets to be covered from financial hub cities in their
respective regions.
The axe will also fall across central and eastern Europe, and South
America, with offices closing and activity routed back through the
lender's home base in London.
The memo did not give details on how many jobs will be affected but
people with knowledge of the matter said 1,000 positions would be
axed, the majority of them in Asia, a region where falling trading
volumes and stronger competition from local banks has hit profits.
The latest cull would come in addition to the 19,000 cuts announced
by Staley in his three-year cost reduction plan.
At the end of 2014, Barclays investment bank employed around 20,500
people according to its annual report, while the bank as a whole had
about 132,300 employees.
Spokesmen for Barclays in Hong Kong and London declined to comment
on the job cuts. By 1058 GMT, shares in Barclays were up 0.5
percent, outperforming in a 0.2 percent stronger STOXX Europe 600
Banking index <.SX7P>.
Ten of Europe's biggest lenders have announced 130,000 job losses
since June, with bank chief executives pulling back from businesses
where they lack scale to focus on more profitable markets.
The reduction in jobs is also in response to the current turmoil in
global equities and commodities markets, which is making it harder
for investment banks to make money in traditional business lines.
The MSCI all-world country index <.MIWD00000PUS> is trading at its
lowest since June 2013.
The cuts were announced to staff in meetings on Thursday across the
Asia-Pacific region, according to a person with direct knowledge of
the matter. "Asia is bearing the brunt," the source added, declining
to be named as they were not authorised to speak to the media.
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Barclays is also exploring the sale of its global precious metals
business, the memo said.
While a market-making member of the London Bullion Market
Association (LBMA), the bank has been winding down its precious
metals business for a number of years.
Since 2014 head of spot gold trading Marc Booker, head of metals and
mining sales Martyn Whitehead, and product manager for metals
Jonathan Spall have all left the bank, leaving just three people in
London, two sources said.
As well as shutting cash equity sales across Central Europe, the
Middle East and North Africa, the memo showed, Barclays will close
its Moscow office and all Russian clients with deal with
London-based staff.
In the Americas, it also plans to end its onshore markets coverage
in Brazil and direct clients to teams in New York and London,
although it will still handle banking services locally.
Reuters on Jan. 5 reported the cuts in the Asia investment banking
business and exits from South Korea and Taiwan, as Barclays
retreated from peripheral Asian businesses to focus on hubs
including Hong Kong and Singapore.
(Additional reporting by Xiaowen Bi, Simon Jessop and Jan Harvey;
Editing by Denny Thomas and Elaine Hardcastle)
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