Barclays to cut 14,000 jobs

Barclays to cut 14,000 jobs

Barclays to cut 14,000 jobs 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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