Barclays consults on job cuts at UK investment bank
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)
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