Barclays to cut 3,700 jobs

Barclays is to cut at least 3,700 jobs and prune its investment bank under a restructuring plan launched by its new chief executive today which seeks to cut £1.7 billion (€1.9 billion) in annual costs and improve standards.

Antony Jenkins said the job cuts will include 1,800 in corporate and investment banking and 1,900 in its European retail and business banking.

He plans to focus investment in Britain, the United States and Africa, and cut back its presence across Europe and Asia.

That will include a scaling back of the investment bank's equities and advisory businesses in Europe and Asia.

Jenkins said he aims to cut the cost base to £16.8 billion in 2015, excluding one-off costs of £2.7 billion over the next three years.

Unveiling the strategic plan alongside annual results, the bank reported a pre-tax profit last year of just £246 million, almost wiping out a £5.9 billion profit in 2011 due to charges for compensating customers mis-sold products and a loss on the value of its own debt.

However, the bank said its adjusted pre-tax profit for 2012 was £7.05 billion, up 26 per cent on the year and in line with the average forecast by analysts.

Reuters