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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Barclays bonus pool 'up to £2bn'

Barclays is set to reveal how much its bonus pool is for 2012 and what it will pay staff in its investment banking arm, around 9,000 of whom are based in London.

The pot is reportedly set to be between £1.5 billion and £2 billion, compared with the £2.2 billion set aside for 2011, which included £1.5 billion for Barclays Capital employees.

Chief executive Antony Jenkins has already assured that bonuses have been slashed to take account of its mounting mis-selling compensation bill and the Libor fixing affair.

Barclays is also reportedly telling more than a thousand top investment bankers there will be no upfront cash bonus this year, with 1,200 managing directors in Barclays Capital receiving nothing until next year.

The bonuses, split 50% in cash and 50% in shares will be paid out in equal portions over three years to 2016.

It is understood cash bonuses in the wider business will be capped at £65,000, while those below managing director level with payouts of between £65,000 and £250,000 will be required to defer 35% of their bonuses.

Analysts expect Barclays profits of £7.18bn

The Libor-rigging scandal and provisions to cover mis-selling claims for payment protection insurance and interest rate swap products mean bottom-line pre-tax profits are expected to slump from £5.9 billion in 2011 to below £1 billion.

Stripping out one-off factors, analysts expect profits of £7.18 billion for 2012, up 28% on 2011, with more than half of this expected to come from its investment banking division.

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Barclays CEO to reveal review results

Barclays is due to deliver its annual results and the long-awaited results of the strategic review. Credit: PA Wire

Barclays chief executive Antony Jenkins is due to reveal his plans for repairing the bank's battered reputation in the wake of a string of damaging scandals.

Bonuses and culture will again be in the spotlight when the bank delivers its annual results and the long-awaited results of the strategic review.

According to reports, about 10% of the investment banking division's 23,000 staff will be shown the door, while Mr Jenkins will close the Structured Capital Markets division, which gained notoriety for its advice to multinational companies on reducing their tax bills.

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