Barclays’ strategic review results in 3,700 job cuts
The international bank currently employs 140,000 staff globally
By Gaurav Sharma | CFO UK | Published 11:55, 12 February 13
Banking sector giant Barclays has announced 3,700 job cuts following a strategic review adding that "very few" of the job cuts would be in the UK.
In a statement on Tuesday, the bank said almost half of the job cuts will take place at its investment banking division in a move aimed at reducing costs by £1.7 billion. Barclays also confirmed that it was closing its Structured Capital Markets (SCM) business, which helped clients with tax avoidance measures.
Giving details about the proposed job cuts, Barclays which currently employs 140,000 staff globally, said 1,800 jobs will go from its corporate and investment banking arm, with the vast majority of the cuts being in Asia, and 1,900 will go from its European retail and business banking.
The cuts, "very few" of which will be in the UK, will take place this year and would result in a restructuring charge of close to £500 million in the first quarter of 2013, the bank said. The announcement came as Barclays reported a dip in pre-tax profits to £246 million from £5.88 billion last year.
The figure included the write-down of £4.58 billion of the value of its own debt, £227 million gain on the sale of BlackRock Investment, £1.6 billion provision for payment protection insurance (PPI) claims and £850 million provision for mis-sold interest rate hedging products claims. However, on an adjusted basis, profits rose by 26 percent to £7.05 billion.
Barclays also said its staff bonus pool was down 16 percent in 2012. The average bonus it paid last year dipped by 13 percent to £13,300, while the average bonus paid to staff at its investment bank fell 17 percent to £54,100.
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