10,000 Barclays staff begin to shudder as the bank has decided to cut jobs in its investment wing, ahead of CEO Antony Jenkins’ transformation review process, which is to be published next month. Most job cuts will be targetted at the London investment banking arm of Barclays. The bank had stated in December last year that 2,000 job cuts are likely in its investment arm under a massive restructuring plan.
A significant number of roles are under the Transform review across all areas of the investment bank, which has been ridden in controversies ever since the Libor and PPI mis-selling scandals broke out. Commodity trading and tax planning are others area of concern which could also see some job cuts.
Barclays’ investment bank contributes more than half of its overall profits, but offlate, it is has also been the most contentious part of the bank, drawing heavy criticism for its functioning from the public, politicians and regulators.The consultation process is believed to end in the first half of February, and that all areas of the investment bank, including front line deal-makers as well as back office staff, were part of the review.
The news of Barclays job cuts comes a week after Antony Jenkins told the bank’s staff that they would have to adhere to a strict new ethical code of conduct if they wanted to remain at the bank. The warning had come after a damning report was destroyed by wealth unit’s COO Andrew Tinney.
About the job cuts, a Barclays spokesman said in a statement, “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.”