Barclays plans to cut jobs in its investment banking business

Nathan Andrada – Fourth Estate Cooperative Contributor

London, England, United Kingdom (4E) – British bank Barclays Plc has informed its staff at its investment bank consulting about plans to slash jobs.

The bank has entered consultation with 9,000 employees of its UK investment banking unit, according to a spokesman of the company. The move is part of a formal review of the entire group by CEO Antony Jenkins.

Jenkins is seeking to implement changes in the bank’s culture as part of a fundamental change within the company following the financial crisis and scandals that had the company involved in Libor rate manipulation and mis-selling of financial products.

Jenkins, who replaced former chief executive Bob Diamond in August after he stepped down following the admission by the bank that several of its employees were involved in manipulation of Libor benchmark interest rates.

U.S. and UK regulators fined Barclays $450mn in July 2012 for trying to manipulate the inter-bank lending rate.

Sources familiar with the plan said that the bank could cut as many as 2,000 jobs out of the 23,000 employed by its global investment banking. Hundreds of UK-based jobs may be affected by the revamp, according to people familiar with the matter.

Investment banking accounts for more than half of Barclays’ overall profits, although it is also the most controversial of all of the bank’s businesses, often getting scrutinized by the public, regulators and politicians.

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