Barclays consults on job cuts at UK investment bank

LONDON Tue Jan 22, 2013 11:58pm IST

Stocks

   

LONDON (Reuters) - Barclays (BARC.L) has launched a consultation with staff in its investment bank whose jobs are at risk following a strategic review by new Chief Executive Antony Jenkins, the bank said on Tuesday.

Jenkins, who took over in August having previously run Barclays' retail operations, is revamping the bank following the departure of Bob Diamond when the bank was fined for interest-rate rigging.

Media reports have said Barclays is expected to cut around 2,000 investment bank jobs as part of a restructuring to be unveiled on February 12, when the bank publishes its 2012 results.

Investment banks around the world are taking a harder line on pay and axing jobs to cope with a regulatory crackdown after the financial crisis that has made them less profitable than in the past. Some analysts believe they will need to cut between 30 to 40 percent of staff.

Hundreds of thousands of jobs have already gone at UBS (UBSN.VX), Credit Suisse (CSGN.VX), Deutsche Bank (DBKGn.DE), Royal Bank of Scotland (RBS.L), Barclays and BNP Paribas (BNPP.PA).

The future shape and size of Barclays investment bank is considered the most critical part of Jenkins' review, as this business contributes more than half of group profits.

Barclays is in the process of finalizing bonuses for staff for last year. Overall, pay for investment bankers for 2012 is expected to fall by between 10 percent and 20 percent on average, sources have told Reuters.

Barclays was fined $450 million in June for rigging interest rates, which forced its chairman and chief executive to quit.

(Reporting by Matt Scuffham; Editing by Steve Slater and Jane Merriman)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

RBI Policy Review

RBI Policy Review

RBI keeps rates on hold, warns on inflation  Full Article 

Monsoon Season

Monsoon Season

India's 2014 monsoon ends with double-digit rain deficit .  Full Article 

Cleanliness Drive

Cleanliness Drive

Modi orders officials to clean loos on Gandhi's birthday.  Full Article 

Bid to Boost Trading

Bid to Boost Trading

RBI takes small steps to deepen markets.  Full Article 

Car Recall

Car Recall

Maruti Suzuki says to recall 69,555 cars.  Full Article 

China Factory Data

China Factory Data

China final HSBC PMI steady in September on stronger global demand but risks remain  Full Article 

Oil Demand

Oil Demand

India's thirst for oil grows even as China cuts back  Video 

EBay Divests PayPal

EBay Divests PayPal

EBay to spinoff PayPal in 2015  Full Article 

New 'Windows'

New 'Windows'

Microsoft names next operating system 'Windows 10'.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage