Barclays cuts 3,700 jobs, as part of British bank’s structural review and to reduce cost

By on Feb 12, 2013 in Asia, Business, Europe, Finance, World Comments

Barclays announced today, Tuesday, February 12, 2013, its plan to accomplish a structural review and will cut 3,700 jobs this year. This move of the British multinational banking and financial services company comes after a series of controversies that led to the resignation of its former CEO, Robert E. Diamond Jr.

Barclays logo

Barclays logo
Image Credit: Barclays.com

According to a press release at Barclays.com, with its headquarter located in London, Barclays‘ target is to reduce the Group’s total cost base by £1.7bn to £16.8bn in 2015, including its interim cost estimates of £18.5bn and £17.5bn in 2013 and 2014, respectively, with the job cuts being expected to save £500m in Q1 2013.

As noted by Barclays, which currently employs 140,000 staff, the job cuts will include 1,800 in the Corporate & Investment Bank services, with most of them are in Asia. Its Retail and Business Banking services in Europe will cut 1,900 jobs, and only few will be coming from UK.

Barclays is changing. We intend to change what Barclays does and how we do it and have set out clear commitments against which our progress can be measured. Our goal is to make Barclays the ‘Go-To’ bank for all our stakeholders.” Barclays CEO Antony Jenkins was quoted in the press release.

“Our plan is built on a rigorous review of 75 distinct business units to determine not only their ability to generate an appropriate and sustainable return on equity, but also their strategic attractiveness, including their impact on Barclays‘ reputation.” Jenkins added, who replaced Diamond in August last year.

Meanwhile, Barclays noted that the company will provide greater disclosure and transparency around their financial performance; and will publish annual performance assessment scorecard. These non-financial commitments come after an alleged interest rate fixing brought the company to pay a $453-million fine.

Consequently, the British financial company said they also plan to focus investment in the UK, US, and Africa, and the restructured Barclays European retail operations will focus on the mass affluent customer segment. In addition, Barclays will also be closing its Structured Capital Markets business unit.



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