Barclays is cutting up to 100 senior staff at its investment bank globally, despite posting strong growth in the UK and stressing its continued commitment to the division.
A person familiar with the situation confirmed the cuts, which were first reported by Bloomberg. The person added that the redundancies were “normal pruning” and did not reflect any change in the bank’s strategy.
Jes Staley, the chief executive who took over Barclays in late 2015, has cut his investment bank’s costs and pared some activities but hasn’t done the kind of transformation restructuring seen at other European rivals like UBS.
The person familiar with the situation said Barclays would continue to “hire selectively” for its investment bank, which former JPMorgan executive Tim Throsby was hired to run last year. Barclays declined to comment.
Big US banks have traditionally cut around 5 per cent of their headcount each year, eliminating poorer performers and curtailing resources in businesses that are in decline.
Fourth-quarter results reported by US banks in recent days show the continued strain investment banks are under, particularly in the fixed income divisions of their trading businesses.
Earlier on Wednesday, Goldman Sachs reported its worst quarterly trading revenues since the financial crisis, after fixed income revenues fell 50 per cent year-on-year in the final three months of 2017. Last week, JPMorgan reported a 34 per cent fall in its fixed income revenues in the final quarter of 2017 versus a year earlier.
Barclays reports its fourth quarter earnings on February 22.