Barclays to cull investment bank with 7,000 job cuts

Barclays is to cut 7,000 jobs from its investment banking division by 2016. It already announced job losses across the group of 12,000 for this year, but this has been increased to 14,000 as a result of the investment bank changes.

Latest ITV News reports

Barclays boss: Job cuts will not damage bank 'at all'

The chief executive of the Barclays Group has rejected claims that morale has sunk within the bank over the announcement it is to cut 7,000 jobs, arguing that it "would not damage" the organisation "at all".

Antony Jenkins told ITV News: "I don't think it is going to damage Barclays at all. I think our colleagues understand what we are trying to do strategically, and the feedback that I have been receiving all through today is they are excited about the direction of the bank.

"Of course we understand that the people who are directly affected by this will be concerned, and of course we are going to treat them with care and respect."

He added: "This is about positioning Barclays so it can succeed and win in the new world."

Read: Barclays to cull investment bank with 7,000 job cuts

Union: Staff bearing brunt of bosses bad decisions

Investment banking union, UNI Finance, a sector of UNI Global Union which represents more than 3 million finance workers across the globe has called for Barclays to reinvest in job creation in its retail operations. In a statement, UNI Global Union General Secretary Philip Jennings said:

Barclays workers are enduring a period of intense and unprecedented upheaval at a time when stress and health problems have never been worse in the banking sector.

For how long will bank employees have to bear the brunt of poor decisions made by executives in the past?

All the while the big boss bonus culture continues unabated.

Barclays must reinvest in job creation in retail operations and recognise the efforts of its loyal workforce.

More: Job losses to shrink Barclays investment bank

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Job losses to shrink Barclays investment bank

The job cuts announced by Barclays today will dramatically shrink the importance of its investment wing, which currently accounts for more than half of the bank's size, to no more than 30% by 2016.

  • The investment division employed 26,200 staff at the end of last year, around 10,000 in the UK
  • But this number has already shrunk to around 24,000 at the start of this year
  • Barclays did not give a breakdown of where the axe would fall when it announced 12,000 job cuts earlier this year
  • In total, the investment bank looks likely to have shrunk by 10,000 or more, from its size at the end of last year by 2016.
  • Last year Barclays hiked the staff bonus pool by 10% to £2.38 billion last year despite profits falling by a third. The highly paid bankers at the investment division would have received a sizable chunk of this loot.

More: Barclays announces thousands of job cuts

Heavy job losses at Barclays investment division

Barclays will cut 7,000 jobs from its investment banking division by 2016 as part of a strategy review.

Read: Barclays to axe 7,000 jobs in investment division

The bank has already announced job losses around the group of 12,000 for this year, but this has been increased to 14,000.

It comes two days after Barclays announced that first quarter earnings from the division fell by half, meaning profits at the group slid by 5%. In a statement, Barclays said:

Plans for the Investment Bank will result in gross headcount reductions of around 7,000 by 2016 across core and non-core.

The overall 2014 Group gross headcount reduction has been increased to 14,000.

More: Barclays to axe 14,000 jobs this year

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Barclays expected to announce thousands of job cuts

Barclays is expected to announce thousands of additional job cuts as part of a radical restructuring of the bank.

The job losses are likely to impact Barclays' investment banking arm, which faces losing over a quarter of its staff by the time the reforms are complete.

Barclays is undertaking a major restructuring to improve performance. Credit: Yui Mok/PA Wire

The figures are expected to be in addition to the 10-12,000 jobs the bank had indicated it would cut after it published full-year results in February.

Read: Barclays to cut 7,000 UK jobs as bonus pool up 10%