Barclays to Cut 14,000 Jobs

PUBLISHED: May 08 2014 @ 03:34 | Comments (1) | More info about Kenneth G. Mondero

About 14,000 jobs will be lost by the end of 2014 at Barclays (LSE:BARC) as the bank revealed its earlier promised strategy moving forward after adjusted profits for the first quarter of this year fell.

In a statement today, Barclays said half of the job cuts will come from the group’s investment arm, which saw a 28 percent plunge in income to only £2.49 billion during the January to March this year compared to the same period last year.

The job cuts go alongside a restructuring of the bank’s business with four core businesses and a non-core banking arm to be charged with the disposal of about £115 billion worth of assets.

Bold Simplification

Barclays Group Chief Executive, Antony Jenkins, refer this move as a “bold simplification” of the bank to focus only “in areas where we have capability, scale and competitive advantage”.

Jenkins, in a statement, envisions a “leaner, stronger, and much better balanced and well positioned” Barclays “to deliver lower volatility, higher returns, and growth.”

Barclays plans to reduce its investment banking’s share in overall business from 50 percent in the current position to only about 30 percent, resulting in a 7,000 job cuts by 2016.

In London, the market welcomed the announcement as shares went up 2.9 percent to 250.25 pence, minutes after trading commenced on the London Stock Exchange.

A webcast presentation is to commence at 10:00 GMT.

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