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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 to axe 14,000 jobs this year

A third of people who work for Barclays investment bank will lose their job by 2016, the bank announced this morning.

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As a group Barclays says the number of people who lose their jobs this year will rise to 14,000 (up from 12,000) as bank cuts costs.

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

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%

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Barclays shareholders stick boot in over bonuses

Barclays chairman Sir David Walker told shareholders at the bank's annual general meeting that staff had to be given higher bonuses in order to stop them leaving, but his speech was met with calls to "sack" the remuneration committee.

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Barclays chairman tells shareholders bonuses had to rise as resignation rates at investment bank doubled. "Genuine threat" to business.

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"We're paying for Manchester United, we're getting Colchester Utd" - another Barclays shareholder stick boot in over level of bonuses.

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Warm applause for shareholder who says "I think the remuneration committee should be sacked".

Barclays making 'material moves in right direction'

Barclays bank is making "material moves in the right direction" despite criticism over its decision to raise the bonus pool and cut jobs, according to a financial expert.

Richard Buxton, one of the City's top fund managers, who oversees billions of pounds at Old Mutual Global Investors told Sky News this week that he was supportive of the chief executive.

Our focus is on the progress being made to improve returns, notably within the investment bank.

We are confident that much more will be achieved here, which will feed through to lower costs and lower compensation over time, albeit in an uneven fashion.

I'm confident that after further work on costs this year, the three-year average 2012-2014 numbers will show material moves in the right direction.

The bank knows it has to improve the staff-to-shareholder reward ratio - but this is a multi-year journey.

– Richard Buxton

Bank bosses to face shareholder fury

Angry shareholders will face Barclays bosses at the bank's annual general meeting, where they are likely to express their fury over high bonuses.

Read: Barclays unveils new chairman

Barclays
Barclays is still trying to recover trust after the libor fixing scandal. Credit: PA

Read: New Bank of England warning over bankers' bonuses

Barclays defied calls for restraint on banking bonuses by increasing the pool by 10% to £2.38 billion despite profits falling by a third and plans to cut thousands of jobs.

The meeting comes after Business Secretary Vince Cable wrote top 100 top businesses, warning them high executive pay would be a "dereliction of duty" and damage public trust.

The bank's pay policy has also been criticised by the Institute of Directors, which complained that the bonus pool for 2013 was nearly three times the £859 million paid out in dividends to shareholders.

Barclays has already announced the appointment of a new director, Crawford Gillies, to chair its remuneration committee. He will succeed Sir John Sunderland at a date to be set.

Read: Hundreds more jobs set to go to at Barclays

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