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Barclays announces 3,700 job cuts Barclays announces 3,700 job cuts
(35 minutes later)
Barclays has said it will cut 3,700 jobs this year following a strategic review. Barclays has said it will cut 3,700 jobs following href="http://group.barclays.com/Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobheadername1=Content-Disposition&blobheadername2=MDT-Type&blobheadervalue1=inline%3B+filename%3DBarclays-Strategic-Review---Announcement-%28PDF%29.pdf&blobheadervalue2=abinary%3B+charset%3DUTF-8&blobkey=id&blobtable=MungoBlobs&blobwhere=1330696255255&ssbinary=true" >a strategic review, as it aims to reduce costs by £1.7bn.
That includes 1,800 jobs at its investment bank and 1,900 in European retail and business banking. Almost half of those job losses will come at its investment bank.
It comes as the bank reported a plunge in pre-tax profit to £246m in 2012, down from £5.9bn a year ago. It comes as Barclays href="http://group.barclays.com/Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobheadername1=Content-Disposition&blobheadername2=MDT-Type&blobheadervalue1=inline%3B+filename%3DBarclays-PLC-Full-Year-2012-Results-Announcement-%28PDF%29.pdf&blobheadervalue2=abinary%3B+charset%3DUTF-8&blobkey=id&blobtable=MungoBlobs&blobwhere=1330696251184&ssbinary=true" >reported a plunge in pre-tax profit to £246m in 2012, down from £5.9bn a year ago, after setting aside money for compensating customers mis-sold products.
That was after the bank set aside money for compensating customers mis-sold products and a loss on the value of its own debt. Barclays boss Antony Jenkins told the BBC: "It will take years before people change their impression of us."
On an adjusted basis, profit rose 26% to £7.05bn, in line with analysts' expectations. He added: "I'm not daunted by that."
Barclays has been rocked recently by the Libor and mis-selling scandals and new chief executive Antony Jenkins, who replaced Bob Diamond in August, has pledged to transform the banking group. Of the job cuts, 1,800 will come from its corporate and investment bank, with the vast majority in Asia, and 1,900 will come from its European retail and business banking.
The bank also confirmed it was closing its Structured Capital Markets business, which helps clients avoid tax. Barclays said very few of the job losses would be in the UK.
It said the job cuts would result in a restructuring charge of close to £500m in the first quarter of 2013. The cutbacks are aimed at reducing costs by £1.7bn a year by 2015. Compensation
On an adjusted basis, profits rose by 26% to £7.05bn, in line with analysts' expectations.
Barclays has been rocked recently by the Libor and mis-selling scandals and Mr Jenkins, who replaced Bob Diamond as chief executive in August, has pledged to transform the banking group.
The bank set aside £1.6bn to compensate customers mis-sold payment protection insurance (PPI) and £850m for those mis-sold interest rate hedging products.
"You should not sell products to customers that are not in their interest," Mr Jenkins told the BBC's Today programme.
"I've been very clear that we have to run this business in a way that delivers for customers and clients."
Bonus pool
Barclays also wrote down £4.6bn on the value of its own debt.
The bank confirmed that it was closing its Structured Capital Markets business, which helps clients avoid tax.
It said the job cuts, which will take place this year, would result in a restructuring charge of close to £500m in the first quarter of 2013. The cutbacks are aimed at reducing costs by £1.7bn in 2015.
Barclays currently employs 140,000 staff.Barclays currently employs 140,000 staff.
The bank said its staff bonus pool was down 16% in 2012. The average bonus it paid last year fell 13% to £13,300, while the average bonus paid to staff at its investment bank fell 17% to £54,100.The bank said its staff bonus pool was down 16% in 2012. The average bonus it paid last year fell 13% to £13,300, while the average bonus paid to staff at its investment bank fell 17% to £54,100.
Do you currently work in Barclays investment banking or its European retail and business sector? How do you feel about the announcement?