March 13 Barclays is planning to axe
thousands of jobs in a radical shakeup of its investment banking
division and may replace the European and U.S. heads of the
unit, the Financial Times reported, citing sources.
The job cuts are expected to be announced before the summer
as part of a new strategy as the bank tries to deal with rising
costs and falling profit at its investment banking division, the
Barclays is also considering replacing Tom King and Eric
Bommensath - who head the U.S. and European divisions of the
investment bank respectively - though this may not happen until
after the new strategy is presented, the newspaper quoted two
people familiar with the situation as saying.
A spokesman for Barclays, asked by Reuters to comment,
denied it was planning a change in leadership at the investment
bank, but did not comment on the job cuts.
Barclays will re-allocate resources from the investment bank
to more profitable areas, such as Barclaycard and UK mortgage
lending, the FT said on its website.
Barclays has been under fire from investors and politicians
after profit fell by a third as the bank awarded staff a 10
percent bigger bonus pot to share last year for last
The investment banking unit had a return on equity of 8.2
percent - below its cost of capital - while its ratio of costs
to income increased from 39.6 to 43.2 percent.
Barclays said in February that it would reduce its workforce
by up to 12,000 jobs this year even while it raised bonuses for
(Reporting by Tasim Zahid and Richa Naidu in Bangalore; Editing
by Anthony Barker)