LONDON--Barclays PLC (BCS) Tuesday put its U.K. investment
banking staff on notice for potential job cuts as it prepares to
restructure the bank to adapt to new regulations and a tougher
business climate.
A spokesman said the bank has begun a process of consultation on
potential job cuts with all 9,000 of its U.K. investment-banking
employees, as part of a formal review of the entire group being
conducted by Chief Executive Antony Jenkins. Mr. Jenkins is to
present the results of the review and a restructuring plan on Feb.
12.
People familiar with the bank's plans previously said as many as
2,000 of 23,000 global investment banking jobs may be eliminated as
part of a broad revamping of the company. Hundreds of jobs may be
cut in the U.K., a person familiar with the matter said
Tuesday.
U.K. employment law requires companies to conduct a 90-day
consultation process when more than 100 jobs are at risk.
"This exercise is being carried out so that we can start to
effect some of the strategic changes as a consequence of the
Transform review of Barclays business, the outcomes of which will
be announced on Feb. 12," a spokesman said. "Transform is
explicitly intended to optimize the entire Barclays business and to
accelerate our already strong performance. The changes planned for
the investment bank are wholly consistent with that intent."
Barclays' potential shrinking of the division comes as other
large banks also pull back from business lines and activities that
are less profitable under coming international rules requiring
banks to hold more regulatory capital. The U.K. has also drafted
new legislation that will force banks to separate their investment
banking and retail arms into separate entities, in an effort to
avoid future state bail-outs of the sector.
Mr. Jenkins took over the top job in August, replacing former
chief executive Bob Diamond, who resigned after the bank
acknowledged that some of its employees had tried to manipulate
interest rates.
Write to Margot Patrick at margot.patrick@dowjones.com
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