January 19, 2018 / 1:05 PM / 7 months ago

Barclays cuts IB jobs, revamps treasury

LONDON, Jan 19 (IFR) - Barclays is cutting about 100 jobs in its investment bank and has merged responsibility for running treasury with its investor relations as it makes another attempt to streamline operations and improve returns, people familiar with the matter said.

IFR reported on January 10, citing people familiar with the matter, that Barclays was planning to make wide and deep cuts to staffing in its investment bank in the coming weeks.

The cuts of just under 100 jobs in its investment bank will include many senior staff, and is weighted towards directors and managing directors, one of the people said. Staff affected in the banking division were told last week, and staff affected in trading are expected to be told this week. Some could move to new roles elsewhere in the bank.

Charlie Berman, chairman of EMEA debt capital markets, was one of the more high-profile names put at risk, people with knowledge of the situation said.

Longstanding UK corporate debt originator Jeremy Froud, one of the few Barclays bankers to have joined the firm when it was called BZW over 20 years ago, could also be let go, while Simon Ollerenshaw, who has worked at Barclays for 10 years, could move from DCM to another area.

People have told IFR the cuts are, so far, heavier in Europe with the more profitable US business less affected.

There is no shift in strategy, which has seen Tim Throsby, who took the helm of Barclays International (which includes the corporate and investment bank) at the start of last year, try to squeeze costs, improve capital efficiency, but also make selective hires in areas where he sees potential to increase revenues and improve returns.

People previously told IFR there were be cuts in other areas of Barclays as part of the squeeze, and areas such as investor relations could be affected.

Barclays last week appointed Kathryn McLeland as group treasurer as well as head of investor relations as part of an internal reorganisation to streamline functions under finance director functions, people close to the matter said.

Dan Hodge, who has run treasury for the past four years, is now considering another role within the bank, the people said.

McLeland has run investor relations for five years after spending 11 years in Barclays’ investment bank, within its team that deals with financial institutions.

RETURNS PUSH

Treasurers deal with financing and liquidity, and have taken on greater importance as tougher capital, liquidity and reporting regulations have been introduced in recent years.

Barclays and other UK banks are also in the process of a complex restructuring that requires “ring-fencing” their UK retail banking operations.

Barclays has been trying to cut costs for several years in an effort to get returns back above its cost of equity. That is being helped by greater automation of back-office functions, and Barclays said in October it planned to step up investment in its trading platforms.

The bank axed 20,000 staff from the start of 2014 to the end of 2016, leaving it with 119,300 at the end of 2016. That included a net reduction of 10,000 staff in 2016 alone. It is due to release full-year results, including headcount changes for 2017, on February 22. (This story will appear in the January 20 issue of IFR Magazine; Reporting by Steve Slater and Alex Chambers)

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