It has been announced that the financial giant Barclays is set to cut jobs in its investment banking sector in a bid to try and slash costs. According to reports, there will be around one thousand job losses in total and the cuts will be across investment banking branches around the world. The financial institution will also be closing its cash equities sector in Asia as a result of its determination to reduce costs and increase returns.
The move comes following the entrance of a new Chief Executive, Jes Staley, who has already started wielding the axe despite having only been in his new post since December 2015. Many have stated that the job cuts are far harsher than had been expected and are said to be the worst by an investment bank for many years.
Competing in a tough environment
The global environment for investment banks has become increasingly tough over recent years, and this dramatic move by Mr. Staley indicates that the new Chief Executive has no intention of sitting back and letting things slide. An internal memo revealed online recently showed that he has plans to close down Barclays’ investment banking businesses in destinations including Taiwan, Thailand, Australia, Malaysia, Indonesia, South Korea and the Philippines. The job cuts will also affect branches in various central and eastern European destinations as well as in South America. Work that is currently carried out by the affected branches will be routed back to London in the United Kingdom, which is where the financial institution is based.
Although no firm numbers have yet been released with regards to how many people will lose their jobs in this latest move, it is believed to be in the region of around one thousand with Asia being the most affected. According to reports, Asia has suffered more than most because competition has been especially stiff from local rivals and trading volumes in the area have been falling.
This latest news of Barclay’s job cuts is not the first to have emerged since Staley took over as the Chief Executive of the group. He has already announced a three year plan that is designed to boost returns and profits for the bank while simultaneously reducing costs. As part of this plan there could be a total of nineteen thousand cuts over the next three years in addition to the estimated one thousand cuts in its investment banking sector.