London, United Kingdom (4E) – British bank Barclays Plc said on Thursday that it is cutting jobs in its Asian investment banking unit as part of the bank’s decision to overhaul its global investment banking business.
Barclays is following the lead by Morgan Stanley, which trimmed jobs in Asia, as the economic slowdown led to shrinking demand by companies for investment banking services.
Barclays Chief Executive Antony Jenkins, who took the helm of the company in August after the firm was penalized for attempting to manipulate Libor benchmark interest rate, will announce details of the revamp operations in February.
The job cuts in Asia, which may affect 70 employees, will be focused on the bank’s equity capital markets, merger and acquisitions (M&A) advisory, global finance and risk, and debt capital market groups. The decision comes after Barclays announced it was cutting 10 per cent of its global workforce in the investment banking division, or 2,000 employees.
Sources familiar with the plan said that the job cuts in the region mirrors the low revenue the bank has been generating from conventional banking businesses like M&A advisory and stock and bond underwriting. Sources also say that Barclays will not likely exit any markets or product areas in Asia.
Barclays’ decision to shrink its investment banking follows similar moves by other financial firms including Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG and UBS AG, which have slashed jobs worldwide amid changing regulatory environment and slow operating revenues.