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.
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.
Barclays will cut 7,000 jobs from its investment banking division by 2016 as part of a strategy review.
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.
A third of people who work for Barclays investment bank will lose their job by 2016, the bank announced this morning.
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.
Barclays has announced it is to axe 7,000 jobs from its investment banking division by 2016.
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.
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.
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.
Barclays chairman tells shareholders bonuses had to rise as resignation rates at investment bank doubled. "Genuine threat" to business.
"We're paying for Manchester United, we're getting Colchester Utd" - another Barclays shareholder stick boot in over level of bonuses.
Warm applause for shareholder who says "I think the remuneration committee should be sacked".
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.