U.K. bank, Barclays, announces massive job cuts
Thursday, May 08, 2014
LONDON – Barclays, one of the U.K.’s largest banks, has announced it is to cut up to 19,000 jobs by 2016.
The bank has been experiencing a lack of demand for government and company debt in its investment arm and in an attempt to streamline itself and allow it to concentrate on its U.K. retail business and its African business and its Barclays credit card arm.
Barclays will create a “Non-Core” or "bad bank" unit worth around £115 billion to group together sections of the bank that will be run down or sold. This will include all of its European retail banking operations as well as investment bank assets worth around £90 billion.
According to a statement by Antony Jenkins, chief executive, “This is a bold simplification of Barclays… In the future, Barclays will be leaner, stronger, much better balanced and well positioned to deliver lower volatility, higher returns, and growth.”
About 14,000 jobs are to go by the end of 2014, of which 9,000 will be from the U.K.
Barclay's profits fell 5 percent in the first quarter of this year, after its investment banking business saw a 28 percent drop in revenue.
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