Barclays' results are out, as are the details of its 'Transform' restructuring plan. Barclays is cutting 1,800 jobs from its investment bank, or around 7% of the total. Overall, 55% of the jobs will go in the front office, with the remainder going in the back office. Senior staff will be most affected.
320 of the new cuts will come in IDB (investment banking and capital markets) and only 230 will come in Barclays' equities business. Across equities and IDB 365 of these people could be "strategically realigned", which a spokeswoman for Barclays told us means that they may be made to work in other areas of the bank.
Within equities and IBD, Barclays said 15% of managing directors and directors will be let go. This implication is that senior staff will be let go at twice the rate of staff lower down the organisation.
Notably, 1,250 of the layoffs will happen outside equities and IBD: the fixed income business will also take a significant hit.
Jenkins also said that Barclays intends to continue as part of a small group of global full service investment banks. However, this only applies in the US and UK. Elsewhere, Barclays doesn't want to be a full service investment bank - it wants to be an "appropriately-sized" bank to "reflect market opportunities." In other words, Barclays' bankers in Asia and continental Europe can expect to suffer disproportionately during the layoffs.
Jenkins also stated that: the commodities business is being "repositioned" to "focus on core banking, financing and risk management activities, and smart physical activities," and that the structured capital markets business is being closed (The structured capital markets business was best known for its hard work helping corporates reduce their exposure to tax.).