As expected, Barclays’ investment bank is making some more redundancies. The Financial Times reports that the British bank plans to lay off 400 investment bankers in addition to the 1,700 redundancies it’s announced already. The FT predicts that the redundancies will mainly affect managing directors who will be working ‘across operations’ including in support functions, mainly in London and New York.
Barclays is due to announce a big strategic review on 11 February when all will become clearer. In the meantime, based upon pronouncements at the time of the bank’s third quarter results in October 2013, here’s who’s likely to be chopped.
1. Anyone whose job can be automated
CEO Anthony Jenkins said Barclays’ Transform Programme is focusing on greater use of technology and “industrialisation and innovation.”
“We are working on ways to automate systems which have traditionally been performed manually,” said Jenkins.
Expect jobs to go across operations, OTC derivatives clearing and derivatives sales.
2. Front office fixed income salespeople and traders whose revenues are weak
In the last quarter, revenues at Barclays’ fixed income currencies and commodities (FICC) business lagged revenues in its combined equities and investment banking business. Jenkins praised the efforts of staff in equities and investment banking, but said that he expected the “FICC revenue pool to shrink over time” and that there was an “implication in that” for Barclays.
3. Anyone working in an ‘exit quadrant’
As it attempts to reduce risk weighted assets and cut leverage, Barclays also plans to wind down its efforts in some areas. These are the designated ‘exit quadrants’ in the table below. Jobs in CLOs and structured credit look especially vulnerable.