Barclays Plc, under pressure to boost returns, will eliminate 7,000 jobs at its investment bank, about a quarter of the total, and signaled its effort to build a global bank is over.
Chief Executive Officer Antony Jenkins’s plan will bring the number of jobs to be cut across the firm by 2016 to 19,000, including the 12,000 the lender said in February it would eliminate this year. Barclays will create a bad bank to dispose of 115 billion pounds ($195 billion) of assets, including its European consumer arm. The investment bank will primarily target the U.K. and U.S., and serve fewer clients, while its Asian unit will be “more focused,” Jenkins told reporters today.
Barclays has struggled since the financial crisis to reduce its dependence on the unit, which once accounted for more than half of profit and assets. Then-CEO John Varley said in Feb. 2009 he expected the investment bank to account for 30 percent of assets by 2016. The figure is still more than 50 percent today.