A big cull of investment bankers has been announced at Britain’s Barclays.
One in four jobs at its investment division are to go – that is 7,000 people.
It is part of a larger shakeup which will cut Barclays workforce by 19,000 over the next three years.
Outside of the investment bank, around half of the job cuts will be from branches in UK, Europe and Africa with most of the remainder slashed from operations and IT.
The investment layoffs signal the bank is reining in its ambitions to be a Wall Street powerhouse, faced with falling profits in that sector.
It will focus more on retail banking, its Barclaycard credit arm and its African business.
“We will refocus and resize our investment bank to bring balance to Barclays,” Chief Executive Anthony Jenkins told analysts and investors. “As currently constituted, it is an unacceptable drag.”
At the same time Barclays plans to sell or run down 115 billion pounds (140 billion euros) of non-performing assets. They will be moved into a so-called “bad bank”.
All of Barclays’ European retail banking operations in Italy, France, Spain and Portugal, as well as some corporate and Barclaycard assets will go into the bad bank.