Barclays could cut up to 7,500 in investment banking

Red River

'The business has fundamentally changed and is not reflected in people stacks'.

Barclays could eliminate 7,500 jobs at its investment bank to improve returns at its securities unit, according to a report by Sanford C. Bernstein.

Bloomberg News reports that the European fixed-income, currencies and commodities business, or FICC, may be the hardest hit, with about 5,000 job losses, analysts led by Chirantan Barua said in a note Tuesday.

Cuts of 6,500 to 7,500 equate to between 25% and 30% of the unit’s employees, the report estimated. Barclays should eliminate Managing Directors first, followed by more junior positions, Barua said.

'The U.S. broker-dealers have been far more proactive in attacking this situation than the European peers', he wrote. 'It has to be cross-sectors, trading desks not only commodities, as the very risk-taking nature of the business has fundamentally changed and is not reflected in people stacks'.

To access the complete Bloomberg article hit the link below:

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