Bloomberg News reports that will bring the total number of jobs to be cut across the firm by 2016 to 19,000, including the 12,000 the lender announced in February it would cut this year, Barclays said in a statement. The company will create a bad bank to dispose of $195bn of assets, including complex derivatives from its fixed-income, currencies and commodities unit and its European consumer arm.
Jenkins, a retail banker by training, has been under investor pressure to cut costs at the investment bank created by his predecessor, Bob Diamond. The unit this week posted a 49% drop in first-quarter profit, as revenue from FICC, traditionally its biggest source of income, dwindled. Today’s plan will cut the investment bank’s share of the firm’s assets to 30% by 2016 from about 50%, Barclays said.
'The revised strategy is sensible and should be well received', Andrew Coombs, an analyst at Citigroup in London, wrote in a note to clients. 'The shift in business mix from investment banking toward retail and commercial could potentially lead to a re-rating in Barclays’ shares'.
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