Barclays to cut 3,700 jobs

Barclays has said it will cut 3,700 jobs after pre-tax profits slumped to £246 million in 2012 from £5.9 billion a year earlier.

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Boris: London can dominate despite banks' woes

London Mayor Boris Johnson pictured opening trading at the London Stock Exchange today.
London Mayor Boris Johnson opened trading at the London Stock Exchange today. Credit: Stefan Rousseau/PA Wire

London Mayor Boris Johnson said the city can extend its lead as the financial capital of Europe despite the huge cost-cutting measures announced by Barclays today.

Speaking at the London Stock Exchange, Johnson said, "Obviously times have been tough for lots of banks for a long time, but it remains the case that the financial sector in London remains immensely strong".

"London is still far and away the dominant financial capital of Europe", he continued. "There are going to be shake-outs of individual banks as there have been. That does not mean that those banks won't go from strength to strength and London's lead won't be lengthened as a financial centre".

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Unite welcomes Barclays' 'culture shift' promise

Unite national officer Dominic Hook has welcomed the Barclays chief executive's promise of a "culture shift" at the bank.

However, Mr Hook said more progress needs to be seen to address the gap between the highest paid and lowest paid employees, which he called "huge".

"It's shocking but true that the starting salary at Barclays is just £13,500 a year, making some workers at the bank eligible to claim tax credits", he added.

Barclays unveils strategic review commitments

Barclays has outlined a number of commitments following the outcome of its long-awaited strategic review.

They include:

  • To close its controversial Structured Capital Markets tax advisory division
  • Focus investment in the UK, US and Africa
  • Reduce total costs significantly by operating more efficiently
  • Cut at least 3,700 jobs across the business
  • Publish an annual scorecard assessing its performance

Chief Executive Antony Jenkins said Barclays is also committed to providing "greater disclosure and transparency" around its financial performance.

"We expect to make good progress towards our financial commitments by 2014 and deliver them fully by 2015", Mr Jenkins said.

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CEO says Barclays 'needs to change' to regain trust

Barclays Chief Executive Antony Jenkins described 2012 as a "difficult year" and acknowledged the bank needs to "change the way we do business" to regain shareholders' trust.

Mr Jenkins said, "In June we reached a settlement with various regulators regarding the bank's misconduct in relation to Libor and Euribor".

Barclays Chief Executive Antony Jenkins.
Barclays Chief Executive Antony Jenkins. Credit: John Stillwell/PA Wire

"We know that we need to change the way we do business if we are going to regain the trust of our various stakeholders and begin to restore our reputation. The process will take time, but we are committed to transforming Barclays".

"We know that we have a great deal of work to do. We know that we will be judged by our actions, not our words", he added.

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