Barclays bank will cut 14,000 jobs, the majority from its investment banking arm, in an attempt to ‘balance’ its operations, the financial institution announced Thursday.
The 325-year-old bank – which holds the second largest assets in Britain – said it would be streamlining operations, while reducing the importance of the investment division, over the next two years, increasing job reductions to a total of 19,000 by 2016.
The investment division itself will lose 7,000 jobs and will account for just 30 per cent of its operations.
The bank – recently ridden with scandals around the 2008 financial crisis, including participating in the rigging of the Libor interbank lending rate – says it is undergoing reform and a culture change with a focus on restoring trust.
"Barclays will be much less exposed to volatility in our investment bank; we will have a structurally lower cost base; and we will continue to invest for growth," said Barclay’s chief executive Antony Jenkins in a statement. "We will be leaner, simpler and stronger."
The bank will also create a “bad bank” unit, to hold 90 billion pounds (US$152 billion) of investment bank assets and 16 billion pounds of European retail banking assets – in the hopes of selling them off to improve the overall health of the bank.
Customer branches in Portugal, Spain, Italy and France will also shutdown; however there are plans to expand in Africa.
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