Barclays announces restructuring and job cuts
Barclays CEO Antony Jenkins and group finance director Tushar Morzaria have announced a significant downsizing of its investment bank, 7000 job cuts and the creation of a £400bn bad bank.
The move comes two days after Barclays has announced a halving of its profits at the investment banking segment, mainly due to a 41% loss from fixed income, currencies and commodity trading.
Moreover, the bank has faced challenges due to tighter restrictions on capital requirements, as Barclays CEO Antony Jenkins (pictured) emphasises.
Barclays will reduce its overall headcount by 10% this year, including 2000 job losses at the investment bank, another 5000 jobs will be cut until 2016.
The bad bank, called “Barclays Non Core” will include £155bn of RWA’s and will have a leverage of £400bn. Until 2016, the bank aims to reduce RWA’s by 20% and leverage exposure by 25%.