Barclays boss wields cost-cutting knife

Last updated 07:30 31/01/2014

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Barclays is cutting 400 jobs from its corporate banking division, adding to the similar number of people axed by its investment bank this week as chief executive Antony Jenkins wields a cost-cutting knife.

The bank cut 3,700 jobs last year as part of a plan to cut annual costs by £1.7 billion ($3.4 billion) and improve profitability, and more could come in other parts of the bank ahead of results on February 11 as the chief executive searches for savings.

Barclays Corporate said on Thursday about 300 jobs would go in its back office and about 100 jobs would go as it combines its product and front office teams.

"As part of the ongoing transformation of Barclays, the shape of corporate banking will also need to change, as we react to advances in technology and simplify the business to better serve our clients," a spokesman said.

Most of the jobs going are in London and should come from voluntary redundancy or natural turnover, he said.

Unite, the union, said a further 120 roles in Barclays' corporate division were being placed "at risk" during 2014. A spokesman declined to comment on that figure.

Barclays is cutting about 400 jobs in its investment bank and staff are being told this week, people familiar with the matter have said.

James Groves, its head of Asia commodities, and Jim Vore, head of credit sales in the region, are among some high-profile departures in Asia, two sources familiar with the matter said.

Jenkins has pledged a fresh course for the bank, in an attempt to restore its reputation following a series of scandals.

He has also made clear that the need for more efficiency, improving technology and changing customer behaviour meant thousands of jobs and hundreds of branches are likely to be axed over the long-term.

"The banking industry is going through what I like to call a 100-year transformation," Jenkins said last week in Davos.

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- Reuters

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