Barclays To Cut Up To 12,000 Jobs
Barclays plans to cut between 10,000 and 12,000 jobs this year, including 7,000 in the UK.
The bank, which has 140,000 staff in total, said it had already told about half of the staff affected.
The cuts came as Barclays said it had increased the total amount it paid on staff bonuses last year.
The bank’s total bonus pool for 2013 rose by 10% to £2.38bn, from £2.17bn in 2012, with the investment bank’s bonus pool increasing by 13%.
“At Barclays, we believe in paying for performance and paying competitively,” said chief executive Antony Jenkins, who has waived his own annual bonus.
Barclays said the job cuts would hit 820 senior manager roles, of which 220 were managing directors and 600 directors.
About 400 of those senior job cuts are from the investment bank.
Barclays said it was hopeful it could achieve the majority of the cuts voluntarily.
The fresh job cuts come after the bank cut 7,650 roles last year.
Profit hit by restructuring
The details come a day after Barclays released its full-year profit figures.
The bank’s statutory pre-tax profits for 2013 rose to £2.9bn, while adjusted pre-tax profits fell to £5.2bn.
Pre-tax profits in its investment banking division slumped 37% to £2.5bn over the year.
Barclays said its profits were hit by restructuring the bank last year, including its withdrawal from certain lines of business, as well as legal costs.
Overall, the bank’s pay-to-income ratio rose to 43.2% from 40% in 2012, well above the bank’s mid-30s target.
The bank said the bonus increase was in the long term interests of shareholders, but said it was still aiming for a mid-30s ratio over “the medium term”.
Canaccord Adams analyst Gareth Hunt said the decision meant that Barclays pay-to-income ratio was above the industry average, currently 40.2% for 2013.
And Roger Barker, director of corporate governance at business lobby group the Institute of Directors, said the executive bonus pool was nearly three times bigger than the total dividend payout to shareholders.
“In 2013, the bank paid out £859m in dividends compared to a staff bonus pool of £2.38bn. The question must be asked – for whom is this institution being run?” he added.
Mr Jenkins is trying to revamp the image of Britain’s third-largest bank, after the aggressive culture of former Barclays boss Bob Diamond culminated in a £290m fine for rigging Libor rates.
Mr Jenkins told Radio 4 that Barclays had made “substantial progress” in his aim of transforming the bank into a so-called “go-to” bank which is attractive to customers.
But he said further work was needed.
“We do have a long way to go and I acknowledge that,” he added.