Barclays will this week cut up to 100 jobs from its investment bank as it pursues chief executive Jes Staley’s plan to revamp its operations.
Most of the redundancies will be concentrated at the managing director and director levels, although some more junior bankers will also lose their jobs.
Job losses will be fairly evenly split between the US and Europe, with consultations with affected workers in Britain starting this week.
The cuts are part of a regular process of reviewing operations, but the bank remains committed to Staley’s strategy of boosting the investment bank. Barclays will continue to make selective hires over the coming year in its investment bank, City A.M. understands.
The chief executive has come under pressure from some investors over his decision to reallocate money towards the investment bank in the hope it can challenge on both sides of the Atlantic.
Barclays was the biggest investment bank fee-earner in the UK last year, and the seventh-biggest worldwide, according to Thomson Reuters data. However, its market share fell by 0.3 percentage points year-on-year, resulting in Credit Suisse leapfrogging it in the ranking.
Staley previously told analysts that “you cannot cut yourself to glory” when challenged over the wisdom of moving money towards the investment banking division, which has struggled for returns in recent years relative to other parts of the business.
The job cuts come ahead of full-year results on 22 February, when Staley will hope to convince markets his strategy is paying off.
Shares fell steeply in the aftermath of the last results announcement as the bank’s trading desk fared worse than its US rivals, although its stock price has since recovered before a new year dip.
Barclays declined to comment.