Scandal bank barclays cuts 3700 jobs

Scandal bank barclays cuts 3700 jobs

1900 of the job cuts, which are planned mainly abroad, will be in the branch business. 1800 jobs to be cut in investment banking – where 1600 jobs were already lost last year.

The bank therefore expects restructuring costs of almost 500 million pounds (584 million euros) in the first quarter of 2013 alone. The bank’s share price rose rapidly after the announcement. Barclays shares topped the uk’s FTSE share index, rising more than four percent to 314.00 pence. Massive job cuts are currently taking place in almost the entire financial sector, including in germany. Banks must significantly reduce risks and costs in order to meet the regulators’ new requirements or to operate profitably.

Barclays has also cut the bonus pool for 2012 by 16 percent. In recent times, the bank was involved in a series of banking scandals, including the manipulation of the internationally significant reference interest rate libor. It also examines whether the bank’s bailout by a qatari sovereign wealth fund in the 2008 financial crisis was done right.

The bank, which employs around 140,000 people worldwide, slipped into the red last year. The bottom line was a loss of 236 million pounds, compared to a profit of almost four billion pounds in 2011. Before minority interests, losses attributable to shareholders actually amounted to just over one billion pounds. In 2011, barclays had still generated a plus of three billion pounds according to this measure.

In 2012, the bank had to set aside 1.6 billion pounds in provisions for claims for damages due to incorrect advice on credit default swaps alone. Because barclays advisors sold high-risk and complex investment products to small business owners without sufficient explanation, the bank had to write off another 850 million pounds.

"Barclays will change," said chief executive jenkins, who last year replaced his boss bob diamond, who had stumbled over the libor scandal. Jenkins focuses on renewal, among other things, with the closure of the "structured capital assets" department. The bank, which employs around 140,000 people worldwide, slipped into the red last year. Its main aim was to design tax avoidance schemes in broad style – a major staple, especially on the home market of the uk.

Jenkins wants to restore the bank’s good reputation. The institution needs to become more transparent and disclose more of its actions, jenkins said, as a result of a strategic review of the bank’s operations. The share of investment banking is to be significantly reduced.

Leave a Reply

Your email address will not be published.