Barclays is set to cut about 100 investment banking jobs, including some top dealmakers, sources told Bloomberg, as the underperforming division forces the British lender to cut costs.
The organisation declined to comment on reports that it was poised to unleash a fresh round of cuts across its business that raises debt and advises companies on mergers and strategy.
According to reports, some managing directors will be made redundant, starting this week, with cuts expected to be split evenly between Europe and the United States. However, Reuters’ sister publication IFR reported last week that the Europe region is bearing the brunt of the cuts, adding that the total number has not been finalized.
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Barclays’ boss Jes Staley has pledged to reduce annual costs, with plans to axe 1,200 jobs and pull out of several Asian countries. Cutting staff expenses is seen as one way of meeting this objective following another set of disappointing results from the division in the third quarter.
The bank said that the cutbacks form part of the strategy announced four years ago to focus on the UK, the US and serving clients globally, while exiting certain product lines.
Global investment banks have reduced headcount to trim costs and focus on profitable areas, in an attempt to meet stringent targets, after reporting declines in profit last year.
Besides Barclays, many Western banks have announced plans to scale down their operations in investment banking in Asia and Europe, as they grapple with slowing revenue growth due to the sluggish economy growth in China, freefall of oil prices and post-Brexit results.