Barclays Goes Tough, Axes 7,000 Investment Bankers

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barclays bank

Barclays today took the axe to its controversial investment banking division, saying it would sack thousands of highly-paid bankers.

A total of 7,000 jobs will go in its investment division, including more than 2,000 in the UK, marking the end of an era for the high-stakes casino banking which defined the financial crisis.

The ‘bold simplification’ plan will cut a total of 19,000 staff around the world by 2016, including ditching its European chain of high street banks in Portugal, Spain, Italy and France.

The dramatic shake-up from the great survivor of the banking crash comes after its profits fell earlier this year – but at the same time it came under fire for raising bonuses by 10 per cent.

In a statement to the stock market, Barclays said its business ‘will be repositioned, simplified and rebalanced’. The bloodletting at the investment arm is likely to see dozens of millionaire bankers shown the door.The smaller bank will focus on its high street operation and underwriting bonds and shares.

Chief executive Antony Jenkins made clear he hopes the changes will draw a line under a turbulent period for the bank.He said: ‘We will be a focused international bank, operating only in areas where we have capability, scale and competitive advantage.

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‘In the future, Barclays will be leaner, stronger, much better balanced and well positioned to deliver lower volatility, higher returns, and growth.My goal is unchanged: to create a Barclays that does business in the right way, with the right values, and delivers the returns that our shareholders deserve.’