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Barclays preparing to cut hundreds of investment-banking jobs: report

By Louis Goss

Barclays is readying itself to slash hundreds of jobs in its investment-banking division, in line with long-running efforts to boost profits and cut costs following a terrible year for dealmakers, according to reports.

The British bank's cuts will hit those working in trading, dealmaking and research positions, and be aimed at under-performers in line with Barclays' annual review process, sources told Reuters and Bloomberg.

"We regularly review our talent pool to ensure that we can invest in high-performing talent, execute on our strategy, and deliver for our clients. However, there are no finalized numbers for this year's review," a Barclays spokesperson told MarketWatch.

Shares in Barclays (UK:BARC) increased 3% on Thursday, having risen 29% over the previous 12 months.

The job cuts come amid a slump in the dealmaking industry, caused by a dearth of M&A activity and initial public offerings, which has seen a drop in income from investment banking.

Barclays itself is currently undergoing a major turnaround, under CEO C.S. Venkatakrishnan, which is set to see it slash its costs by GBP2 billion over the next two years, by prioritizing its more profitable lending segments and reducing its reliance on its investment bank.

In November 2023, Barclays was reportedly considering plans to save GBP1 billion by cutting 1,500 to 2,000 mainly back-office jobs. The bank previously cut 5,000 jobs in 2023, according to Reuters.

-Louis Goss

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03-21-24 0732ET

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