BARCLAYS Capital has confirmed plans to shed hundreds of jobs in its UK office even as the firm continues to hire in growth hotspots in Asia.
Both front and back office jobs are set to go as the firm cuts down on costs in line with a fall in revenues this year.
BarCap – the investment banking division run by incoming Barclays chief executive Bob Diamond – said yesterday that it had begun a 90-day consultation period that will allow it to reduce its headcount, a process only required if a company plans to cut more than 100 workers.
The firm has had a difficult year, with revenues dropping off in a slow market for investment banks. Its income was down 14 per cent in the third quarter to £2.8bn, having already fallen 15 per cent during the previous quarter.
However, the UK office is the only one currently slated for job cuts globally. The firm had already cut 300 jobs in August but overall added 2,000 workers in the first half of 2010 to fill places in its new equities advisory division.
Hiring is expected to continue as normal “across those parts of business that are growing”, the firm said in a statement. Growing areas include fixed income, commodities and equities and advisories, but headcount is likely to expand at a slower pace than during 2010.
Tim Hedger, deputy managing director of City recruiting firm Marks Sattin, said that although finance jobs are overall being added in London, the Asian job market is much more vibrant. “The UK is failing to keep pace with global rival, Singapore,” said Hedger, pointing to the market for skilled accountants.
“In Singapore [it] is burning white-hot: the average salary rise has hit 20 per cent this year, although we have seen rises of 50 per cent offered to tempt departing accountants to stay at the firm,” he added.