Barclays has announced that it will be cutting 3,700 jobs in order to save £1.7 billion.
Almost half of the announced job losses, 1,800, will be in Barclays’ corporate and investment bank, whilst 1,900 will come from its retail branches.
Plans are to focus investment in Britain, the US and Africa, reducing the bank’s presence in the rest of Europe and Asia. Very few of the job losses will be in the UK.
New chief executive, Antony Jenkins aims to turn around the bank’s reputation, cut annual costs and raise standards after a series of scandals affecting Barclays bank, including Libor rates rigging and misselling.
He told BBC radio: ‘I understand the cynics and the skeptics out there, but cynics and skeptics never built anything. It will take years before people actually change their impression of us. I’m not daunted by that at all.’
Jenkins will also be taking a harder line on bankers’ pay, cutting the average bonuses by 17% last year and planning to take them down a further 14% this year.
Barclays will also be cutting their tax advisory business, despite its profitability.