Boston, MA 06/06/2014 (wallstreetpr) – Having cut jobs earlier this year, Barclays Bank (NYSE:BCD) gets into one more round of job cuts. Barclays will cut several jobs in the Investment Banking sector in order to save cost, and it shall trim about 7000 jobs in a span of 3 years.
The Layoff:
Barclays Bank (NYSE:BCD), the second largest bank of U.K. in terms of assets has its fair share of problems including the interest rate rigging or miss-selling of insurance products. As a viable option for reviving profitability and cutting costs, it has accorded with trimming of jobs. The job cuts are most likely to be in the FICC (Fixed Incomes, Currencies and Commodities) domain and not in the equities and the advisory sector. The said domain is falling back due to changes in the regulation and diminishing revenues.
The exact number of cuts in jobs is still not known, but it shall be across Asia, Europe and The United States as confirmed by sources.
The Focus:
Antony Jenkins, Barclays Bank (NYSE:BCD) Chief Executive, says that their main focus is making the bank as the powerhouse of Wall Street. To achieve those ambition job cuts are mandatory. He also claimed “These reductions are in line with our commitment to a higher-returning investment bank with an origination-led banking strategy and a markets business focused on standardized, liquid products.”
It was also made clear by Timothy Cuffe, who is a spokesman for the bank in Hong Kong that shall not exit any of the 11 countries they are operating in. He also added that they shall continue to seek growth in key areas for bank
The Reaction:
The reaction of people from the industry is not favourable. Also, there was a huge uproar about the increase in bonuses for Investment Banking staff despite losses. According to Sandy Chen, analyst at Cenkos Securities Plc, cost cutting in Investment Banking may not always be about head-cutting, because when you cut jobs you also trim the associated revenues with that head.
