BARCLAYS is to cut hundreds of investment banking jobs in London next month, yesterday launching a consultation on the job losses.
The bank is expected to shut controversial businesses including its tax planning arm and agricultural commodities trading units next month under a major review by new chief executive Antony Jenkins, aimed at improving the bank’s reputation. He was brought in after Bob Diamond resigned in the wake of the Libor scandal and is clamping down on bad behaviour to restore the firm’s image.
But the bank is also joining the industry-wide push to cut costs, laying off staff to cope with the poor market conditions and to shore up profits in the face of weak revenues.
Hundreds of jobs will go in the City and Canary Wharf – up to 10 per cent of the investment banking arm’s 10,000 employees in London. Globally 2000 staff are expected to be cut, many in the group’s Asian units.
“We have begun a process of consultation with UK based employees. 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 the 12th of February,” the bank said in a statement.