Barclays to cut hundreds of jobs across its investment bank

Barclays Plc is preparing to cut several hundred jobs within its investment bank division as the firm embarks on a yearslong efforts to trim costs and boost profits within the unit, according to people familiar with the matter.

 

The cuts will affect staffers in global markets, research and the firm’s investment banking arm, according to the people, who asked not to be identified discussing non-public information. They are expected to take place in the coming months and are part of the firm’s annual cutting of low performers, the people said.

“We regularly review our talent pool to ensure that we can invest in high-performing talent, execute on our strategy, and deliver for our clients,” Barclays said in an emailed statement, which noted it hasn’t finalized the number of roles included in this year’s review.

In recent months, Wall Street giants from Citigroup Inc. to JPMorgan Chase & Co. have turned to job cuts in response to the global slump in dealmaking and capital markets activity. At Barclays, the moves come as the company is kicking off a lengthy push to improve the profitability of its investment bank division, which has been stung by that dearth of activity as well as higher-than-usual attrition among dealmakers.

Barclays plans to cut 1,700 jobs across the UK

Barclays is to cut 1,700 jobs from across its branch network in the UK, the bank has announced.

The cuts come as it scales back the number of branches across the country.

Barclays said in a statement that the way people accessed banking services was changing rapidly, with more using smart phones and other technology.

The bank has launched a voluntary redundancy scheme and said staff would be "fully consulted" and "have access to the support... they require."

Barclays has 1,577 branches employing 33,600 staff.

The Unite union, which represents some bank staff, said customer service could suffer as result of the cuts and said Barclays was making a "colossal mistake" .

'Service'

The jobs going are equivalent to one staff member per branch, Barclays said, and will involve a host of frontline roles including cashiers, personal bankers, operational specialists, and branch and assistant managers.

They will be rolled out through 2014.

Unite's national officer, Dominic Hook, said: "These employees deliver high levels of service that customers of the bank benefit from.

"Such a massive reduction will be very detrimental to the bank and will also be hugely challenging for the staff remaining."

The union said it would have "urgent" discussions with Barclays in an attempt to put forward alternative proposals.

Unite said it had already successfully argued with Barclays for training grants for staff leaving Barclays, and compensation for those who volunteer to reduce working hours.

Last week it was announced that around 600 jobs would be lost as a result of the closure of centres at Coventry and Dartford.

Earlier this month Barclays said it would close four branches and move staff and banking services to nearby Asda stores.

Barclays to Cut 3,700 Jobs

LONDON—Barclays on Tuesday said it would slash several thousand jobs as part of a three-year effort to rebuild the bank's tattered reputation and ready it for a tougher regulatory environment.

Under Chief Executive Antony Jenkins' new plan for the lender, around 3,700 jobs will go, mostly in its investment bank, as it aims to slice around 9% from its £18.5 billion cost base by 2015.

Barclays will focus future investment on its U.K., U.S. and African operations. Meanwhile, the bank's loss-making European retail operations will prioritize targeting wealthy customers. The bank's powerful investment bank, which historically has accounted for more than half of profits, will be "repositioned" in Europe and Asia, where the division has less traction with clients than in the U.K. and U.S. Some 1,600 jobs have already been cut, mostly in Barclays European and Asian equities teams.

Since his arrival in August, following a management clear-out sparked by allegations of rate rigging, Mr. Jenkins has pledged to rebuild a bank with a lower risk appetite and better relations with regulators.

Barclays Capital Cuts Up to 10% of U.S. Staff Days Before Bonus

Barclays cut between 5% and 10% of its capital markets, advisory and other investment banking units in the U.S. yesterday, just days before bonuses are scheduled to be announced.

The cuts ran the gamut in terms of seniority, affecting first-year associates through director level. The source had no knowledge of anyone on the managing director level being cut.

Barclays declined to comment.

In an unusual and somewhat brutal move, the eliminations included first-year investment bankers, said the source. Normally graduates who join Barclays in investment banking keep their jobs for a minimum of two years to “assess whether they like the job and perform before they are considered to be put under the chopping block,” the source said. “Now banks evaluate people as soon as they walk in the door.”

The cuts come just before bonuses are due to be announced on Friday, according to a source in the bank, and those laid off won’t be eligible to be paid bonuses. That will save Barclays millions of dollars.

“If there is a fully discretionary provision, there is really no recourse for the employee,” said Joanne Seltzer, a partner in the New York City office of Jackson Lewis LLP. Seltzer wasn’t specifically commenting on Barclays cuts.

As is the practice at many banks governed by U.S. employment laws, Barclays made its job cuts with efficiency. “They call your desk, you go to your manager’s office, he says you’re being let go. You can’t talk to anyone, and they tell you that if everything doesn’t go to plan, security is standing by,” the source said.

“It’s like an execution.”

The firm will also lay off an additional 275 investment banking employees in May as part of its strategic review, according to Bloomberg Businessweek. The May cuts are based on economics, according to the company.

Barclays to Cut 1,000 Employees

Barclays will lay off 1,000 employees as it withdraws from its financial planning advice business for U.K. retail banking customers. The firm announced yesterday that it will move the investment services online as "it is unlikely that this business would be able to deliver a return that would justify the investment required."

Georgie Carter, a Barclays spokesperson, said that the decision was based "on us seeing a decline in the commercial viability of the business." The 1,000 employees affected will be placed into a redeployment program that will span six months, she said. Employees will be able to apply for internal positions and also receive support to apply for external roles.

The cuts will take place across the country and begin on February 18.

Barclays Capital Plans Layoffs

Barclays Capital, the investment-banking unit of Barclays PLC, will announce plans to lay off several-hundred back-office staff as early as Wednesday, according to a person familiar with the matter.

The job cuts come following Barclays' expansion of its investment-banking unit, spurred by the London-based bank's purchase of Lehman Brothers Holdings Inc.'s North America operations in September 2008.

Barclays has increased its head count by several thousand in the past year, to 25,500, and cuts could raise questions about timing of the build-out.

Market activity slowed in the second quarter, affecting all investment banks. At Barclays Capital, revenue fell 15% in the second quarter from the first quarter and its cost-to-net-income ratio rose to 69% from 57% in the first quarter.

The person close to the matter said the back-office cuts are routine, and Barclays will continue to hire people for roles in the investment bank through the end of the year, especially in areas like equities.

At a half-year results presentation last week, investment-banking chief Robert E. Diamond Jr. said BarCap's expansion was on track.