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Barclays moves to cut 'a few hundred' investment bank underperformers

Published 01/05/2024, 13:58
Updated 01/05/2024, 15:35
© Reuters. FILE PHOTO: A branch of Barclays Bank is seen, in London, Britain, February 23, 2022.  REUTERS/Peter Nicholls/File Photo
BARC
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LONDON (Reuters) - Barclays (LON:BARC) has kicked off a fresh round of redundancies, cutting "a few hundred roles" at its investment bank as it ramps up efforts to tackle underperformers and reinvest in new talent, sources with direct knowledge of the matter told Reuters.

The British lender, which is already engaged in a group-wide cost-cutting programme aimed at reducing costs by around 2 billion pounds ($2.50 billion), began informing employees of the intended cuts on Wednesday, one of the sources said.

Staff impacted are based in the bank's global markets, investment banking and research division, the source added.

"As previously reported, we regularly review our talent pool to ensure that we can invest in talent and deliver for clients," a spokesperson for the bank said in a statement.

"This is difficult, but necessary, to ensure we position ourselves for long-term success as we execute against our strategy."

Bloomberg earlier reported that Barclays had begun making the cuts.

The bank axed around 5,000 jobs in 2023 after dealmaking activities slumped across the industry.

In November, Reuters exclusively reported the lender was working on plans to save up to 1 billion pounds by shedding a further 2,000 jobs, mainly in the British bank's back office.

© Reuters. FILE PHOTO: A branch of Barclays Bank is seen, in London, Britain, February 23, 2022.  REUTERS/Peter Nicholls/File Photo

Barclays reported a slightly smaller than expected 12% fall in first-quarter profit last week, boosting confidence among investors that its turnaround task was on track despite lower income from trading and sluggish mortgage demand.

($1 = 0.8008 pounds)

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