Kamis, 08 Mei 2014

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Barclays: 20,000 Job Cuts In *Break From Past*

Sky News – 

Barclays has confirmed around 20,000 job cuts under a new strategy that distances it from the 'casino banking' championed by former boss, Bob Diamond.

The details - as reported by Sky's City Editor Mark Kleinman on Wednesday evening - were revealed following a review which aimed to reduce risk in its investment operation and cut excessive costs.

The bank's update pleased investors - with its share price rising more than 3% when the FTSE 100 opened for business.

Barclays confirmed 14,000 positions would be axed across the Group during 2014 - around half of them in the UK.

A further 7,000 positions will go in the investment bank up to 2016 - but 2,000 of those losses are included in the 14,000 figure.

In addition to the job cuts, the bank's chief executive Antony Jenkins confirmed the creation of Barclays Non-Core - a unit to house "assets which do not fit the strategic objectives" of the group.

Barclays said it would look to run down or exit Risk-Weighted Assets worth £115bn from the new unit.

Mr Jenkins said: "This is a bold simplification of Barclays. We will be a focused international bank, operating only in areas where we have capability, scale and competitive advantage".

He added that Barclays would become "leaner, stronger, much better balanced and well-positioned to deliver lower volatility, higher returns, and growth".

The bank's actions place Mr Jenkins' personal stamp on the Group - signalling an end to the seemingly limitless ambition placed on the investment operation by his predecessor, Bob Diamond, who quit over the Libor rate-rigging scandal.

Barclays said it now expected 30% of Group profits to be made by the investment bank - down significantly from the average 50% it contributed under Mr Diamond.

Of the £115bn placed in Barclays Non-Core, £90bn of the toxic assets are from the investment bank.


https://uk.news.yahoo.com/barclays-20-000-job-cuts-strategy-061059599.html

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