Barclays is to cut 19,000 jobs by 2016, with almost half of those to go in the UK. The investment banking part of the business will lose around 7,000 jobs following a slowdown and Barclays will also set up a ‘bad bank’ with the goal of selling or running down £115bn of non-core operations, including £90bn of its investment bank assets and all of its European banking operations.
This, it’s said, will allow Barclays to focus more on its UK retail operations, the Barclaycard credit card arm and its business in Africa. “This is a bold simplification of Barclays,” said chief executive Antony Jenkins. “We will be a focused international bank, operating only in areas where we have capability, scale and competitive advantage.”
It’s expected that around 14,000 jobs will be cut in 2014 alone, with the UK being hit hardest. The investment banking arm employs 26,000 people world-wide, so that number is set to be drastically reduced.
However, Barclays shares were up by over 5% after the announcement following a 5% profits fall in the first quarter of 2014. This came about after a 28% slump in revenue for the investment banking business.
In its statement, Barclays made no mention of branch closures, though some industry experts predict that up to 400 Barclays branches could be closed over the next few years.
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