Barclays To Axe 20,000 Jobs By End Of 2016
Barclays will detail plans this morning to cut approximately 20,000 jobs by the end of 2016 as the bank's chief executive steps up his efforts to tackle its bloated cost base.
Sky News can reveal that Barclays intends to axe just under 15,000 jobs this year, up from a 10,000-12,000 range indicated at its full-year results in February.
It is then expected to cut more than 6,000 additional roles at its investment bank during the following two years, meaning that well over a quarter of the division's 24,000 workforce will have been culled by the time the restructuring is completed.
Other cuts are also expected to be outlined.
Antony Jenkins, Barclays' chief executive, will set out the cost-cutting plan in an announcement that will be closely scrutinised by the City for evidence that he can successfully eradicate costs and improve returns to shareholders.
Insiders said that Mr Jenkins' blueprint for the future of Barclays, which will include the creation of a new non-core unit, would firmly distance his strategy from that of his predecessor, Bob Diamond, whose oft-stated ambition was to lead a global universal bank.
In a memo to staff last month, Mr Jenkins attempted to allay concerns among staff that Barclays was poised to withdraw from investment banking altogether.
"Regulatory developments and the macro-economic environment are having a significant effect on some parts of our business which we need to address proactively and decisively," he wrote.
"The future for Barclays will be as a strong, focused, international bank. And the investment bank will continue to be a part of that mix."
Of the nearly 15,000 jobs that will go this year, about a quarter will come from the investment bank, while Barclays, like other UK lenders, is streamlining its high-street branch network as customers increasingly access banking services online and through mobile devices.
The new non-core unit, or 'bad bank', will echo a similar move by Royal Bank of Scotland last year.
Sky News understands that it will house in the region of £100bn of under-performing assets on Barclays' balance sheet, including its retail businesses in European markets such as Italy, Portugal and Spain.
The boldness of the reorganisation is likely to please City shareholders who have battled the bank's board in recent months amid rising employee bonuses despite last year's profits decline.
Mr Jenkins will also announce changes to the leadership of Barclays' investment bank, with Eric Bommensath, the joint chief executive, moving across to run the new Barclays non-core division, leaving Tom King as the sole head, a source said.
This week's first-quarter results provided further evidence of the need for Barclays' restructuring, with profits at the investment bank being hit by a slowdown in fixed-income markets which has also affected its rivals.
Barclays declined to comment.