LONDON Feb 6 Barclays Plc is nearing
the completion of a raft of job cuts at its investment bank as
part of its new chief executive's plan to streamline operations
and cut costs, a person familiar with the matter said on
The scale of cuts is unclear, but analysts expect Chief
Executive Antony Jenkins to announce about 2,000 investment bank
jobs have gone when he unveils a strategic plan on Feb. 12.
Sources said there have been cuts in front- and back-office
functions, and they have included fixed income, commodities,
currencies, equities and advisory business areas.
Barclays started the cuts just over two weeks ago, and the
process is mostly complete in Asia and the United States, one
source said. Staff affected in Britain have been told, but
consultation periods for the UK and Europe have prolonged the
Barclays staff are due to be told their 2012 bonus awards on
Friday. Overall pay for its investment bankers for 2012 is
expected to fall by between 10 percent and 20 percent on
average, sources have told Reuters.
Barclays plans to cut 275 jobs in three locations in New
York, including its office in the former Lehman Brothers
headquarters, the British bank said in a filing with the New
York State Labor Department.
Wednesday's filing also showed the layoff date would be May
Jenkins, who took over in August after having run Barclays'
retail operations, is revamping the bank following the departure
of Bob Diamond when the bank was fined for rigging Libor
Barclays had 23,300 investment bank staff at the end of
June. Analysts say 5 to 10 percent of staff could go, although
some suggest a bigger cull of 15 percent, or more than 3,000
jobs, could be seen.
Investment banks around the world are taking a harder line
on pay and axing jobs to cope with a regulatory crackdown after
the financial crisis. Tighter regulations have made them less
profitable than in the past, and thousands of cuts have been
made at rivals including UBS, Deutsche Bank
and Royal Bank of Scotland.