That sinking feeling.
Barclays has this week cut several hundred jobs in its investment bank as part of its plan to shrink the business by 7,000 staff over the next three years to save costs, people familiar with the matter said.
Reuters reports that the cuts will mostly be in the fixed income, currencies and commodities (FICC) trading and markets businesses, rather than in advisory and equities. FICC is the area that Barclays and several other banks such as UBS are scaling back due to falling revenues and tougher regulations.
The precise number of job losses was not known, but there will be cuts in Asia, Europe and the United States, the sources said.
The reductions represent about 5% of the firm’s investment bank workforce in the region, said the person, who asked not to be named because the cuts aren’t public.
'Job cuts in Asia will continue', Louis Wong, a Hong Kong-based fund manager at Philip Capital Management, said by phone. 'Banks in Asia are experiencing slower growth in emerging markets and cost-cutting is one major way to boost their return on equity, similar to what the global banks have done in matured markets'.