Barclays has said it will cut 3,700 jobs following a strategic review to reduce costs by £1.7bn. Almost half of those job losses will come at its investment bank.
Barclays currently employs a 140000 staff and has said that few of the job losses would be in the UK. Of the job cuts, 1,800 will come from its corporate and investment banking, with the vast majority in Asia, and 1,900 will come from its European retail and business banking.
Barclays has reported a plunge in pre-tax profit to £246m in 2012 from £5.9n in 2011 after setting aside compensation for mis-sold products and a loss of value of its own debt.
After a string of damaging incidents the bank is seeking to rebuild its own reputation. It was fined £290m last year for attempting to rig the Libor interest rate, and has also been caught up in the industry-wide mis-selling scandals involving payment protection insurance (PPI) and interest rate investment products.
Barclays has been impacted by the Libor and mis-selling scandals and Mr Jenkins, who replaced Bob Diamond as chief executive in August, has pledged to transform the banking group.
“You should not sell products to customers that are not in their interests,” Mr Jenkins told the BBC’s Today programme.
“I’ve been very clear that we have to run this business in a way that delivers for customers and clients.”
The bank set aside £1.6bn to compensate customers mis-sold PPI and £850m for those mis-sold interest rate hedging products.
The extra provision from Barclays for PPI, which includes £600m announced by Mr Jenkins earlier this month, takes the combined total for overall PPI compensation for the UK banking industry to £13.6bn.
Get a Free Quote From PLS
If you need any help or simply have a question, please get in touch...