Cutting 6,000 positions in 100 days.
Jes Staley said he’s eliminated more than 6,000 positions in his first 100 days in charge of Barclays, after the new CEO shrank the investment bank and exited countries from Brazil to the Philippines.
“We’ve now reduced the headcount by well-north of 6,000 people, so double what was done in the last four years in the first four months,” Staley, 59, said Tuesday at the Morgan Stanley Financials Conference in London. “On the day that I arrived at Barclays, we imposed a headcount freeze.”
Bloomberg News reports, however, that the efforts haven’t boosted the stock. The shares have fallen 30 percent since Dec. 1 and trade at about 50 percent less than its book value, driven in part by Staley’s decision to slash the dividend in half for the next two years.
“Any management of a bank that is trading below its book value can’t sleep at night,” Staley said. “You, our shareholders, are saying that with the stock price at the current level, we are destroying value. So what Barclays has to be dedicated to is to produce the financial results that generate the confidence from the shareholder base.”
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