'The cost-cutting story....will get even more painful'

Honey I Shrunk The Banks

'They structurally need to cut 15 to 20% of Managing Directors, straight off'.

The Telegraph reports that hundreds of senior Barclays investment bankers and managers face being made redundant this year, along with thousands of ordinary staff, as the firm looks to cut as many as 12,000 jobs.

Barclays is planning to cut 820 Managing Director and Director-level staff, of which about half are expected to come from its investment banking arm, as part of an effort to reduce costs across the bank.

Bloomberg News has reported that Barclays may need to shrink even more quickly to compete with investment banks in the U.S., said Chirantan Barua, an analyst at Sanford C. Bernstein in London.

'They structurally need to cut 15 to 20% of Managing Directors, straight off', said Barua, who has a market perform rating on the stock. 'The cost-cutting story from Barclays will get even more painful given the recovery of the U.S. broker-dealers'.

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