'Death by a thousand cuts and morale has been hard hit'.
Bloomberg News reports that less than a week into his new job, Barclays CEO Jes Staley is mulling deeper cuts at the securities unit that could see an additional 20% of bankers lose their jobs, according to people with knowledge of the matter.
Under the plan, the bank is looking to eliminate jobs in Asia and the global cash equities business, the people, who asked not to be identified because the strategy is private, said late Friday.
The cuts, which would come on top of an existing program to reduce 7,000 jobs at the investment bank through 2016, could be announced early next year, with the Asia securities division not considered competitive and profitable enough, they said.
'The focus of Barclays’s ‘new’ investment bank is the U.S. and the U.K. and everything else is peripheral, so no surprise Asia is taking the biggest hit', said . 'The problem is that the investment bank has been subject to ‘death by a thousand cuts’ and morale has been hard hit. It must be hoped this is the last big culling, if the franchise is to survive', Christopher Wheeler, an analyst in London with Atlantic Equities LLP said.
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