Barclays is eliminating at least seven posts in its Scandinavian and continental European fixed-income teams as part of its job cuts across the investment bank, according to people with knowledge of the matter.
Bloomberg News reports that those employees leaving offered rates and foreign exchange services to European and Scandinavian customers and are based in London, said the people, who asked not to be identified because the decisions haven’t been made public.
The cuts are part of part of the 7,000 reductions CEO Antony Jenkins plans to make by 2016 to revive profitability. Barclays has been hurt by a decline in revenue from trading fixed income, currencies and commodities - traditionally its biggest source of revenue - and regulatory demands to boost capital.
'The rising cost of capital as the Basel rules impact risk-weighted assets and leverage ratios has made banks more thoughtful about how they deploy their capital', Kevin McPartland, head of market-structure research at consulting firm Greenwich Associates, said by e-mail. 'Shrinking and merging teams creates considerable cost efficiencies'.
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