Barclays jobs are disappearing, especially in the investment bank. When Barclays results were announced today, the bank accidentally-on-purpose omitted to say how many people it now employs in its investment bank, or how much it's paying them. However, during the accompanying investor, Barclays disclosed that it's cut 800 front office jobs in the investment bank so far and 5,000 jobs across all of its businesses areas since May, with 2,500 of those coming out of the investment bank. Barclays wants to cut 7,000 people from its investment bank by the end of 2015, so that only leaves 4,500 redundancies to go.
Who's most at risk at the business formerly known as Barclays Capital? We looked at exits from Barclays' London business over the past few weeks. The UK Financial Conduct Authority's (FCA) register of individual shows whose been leaving the bank and reflects the jobs most likely to be chopped.
On this basis, we suggest Barclays bankers in the following areas could have reason to fear for their futures.
Barclays' CEO Antony Jenkins wants to take costs out of the investment bank by automating as much as possible.
As trading switches to electronic systems, Barclays will need fewer salespeople to tout securities to clients. Costs need to be cut urgently, across Barclays' equities sales and trading business (revenues down 10% year-on-year in the first half), its Barclays' credit sales and trading business (revenues down 14% in the first half), and especially in Barclays' macro trading business (revenues down 35% in the first half).
Recent changes to the FCA register suggest that Barclays has indeed been disposing of salespeople. In the past three weeks, Mia Bjorkenstam (an FX salesperson), and Philip Hardwick (a director in commodity sales) have left the bank.
Anyone in macro (FX and rates) sales needs to be very afraid indeed.
Barclays has also been losing equity researchers who focus on the oil and gas industry. Both Alessandro Pozzi and Iva Krasteva, two senior equity research analyst in oil and gas, have left the bank's London office according to the FCA Register. They may, however, have left of their own accords - RBC Capital Markets has been poaching from Barclays' equity research team in recent months. In April, the head of Barclays' American equity research team left, saying he wanted a 'new challenge.'
Barclays' prime brokerage business is also losing staff. In the past three weeks, Simon Nottage, a director in the prime broking business and Alex Lawton, head of equity finance for EMEA have both left according to the FCA Register. As Barclays deleverages and reduces its appetite for taking risk, it seems likely that the prime brokerage business which interfaces with hedge funds will suffer.
If salespeople. equity researchers and prime brokerage professionals are disappearing from Barclays London office, who's hanging around? M&A bankers and capital markets professionals look assured of a more certain future. Yes, Mark Warham, the 52-year-old head of Barclays' European M&A team left last month, but Barclays' capital markets and M&A businesses achieved a 10% increase in revenues in the first half.
Barclays still has plenty of work to do. Profits at the investment bank fell 46% in the first half of 2014 compared to the same period one year earlier. The return on average tangible equity fell from 15.7% to 5.9% over the same period. This was partly due to the costs of Barclays' restructuring. For the moment, however, the investment bank doesn't look too healthy, and things don't seem to be getting better -during today's conference call Barclays' CFO Trushar Morzaria said that July could be the weakest month of the year so far for Barclays' investment bank. That can only be bad news for the 23,000 or so people who are still working there.