Layoffs 2024: Barclays to cut hundreds of investment banking jobs. What we know so far? What will be the impact?

Barclays Plc is set to cut several hundred jobs within its investment bank division it attempts to trim costs and boost profits within the unit, Bloomberg reported citing people in the know. Staffers in global markets, research and the firm’s investment banking arm will be affected by the cuts. The layoffs are expected to take place in the coming months and will be a part of the firm’s annual cutting of low performers, the report claimed. This comes as Wall Street giants like Citigroup Inc. and JPMorgan Chase & Co. have turned to job cuts amid global slump in dealmaking and capital markets activity.

Barclays said in an emailed statement as per the report, “We regularly review our talent pool to ensure that we can invest in high-performing talent, execute on our strategy, and deliver for our clients. However, there are no finalized numbers for this year’s review.”

Why is Barclays cutting jobs?

The company is seeking to improve profitability of its investment bank division and has faced questions from investors about the viability of its Wall Street operations because the investment bank consumes more capital than other divisions across the firm. Chief Executive Officer C.S. Venkatakrishnan laid out plans for the unit to become more profitable by focusing on boosting its advisory. Following this, the company has been refocusing its businesses on industries it believes will be most active in the coming years.

“The simple way to think about it is that we’re looking for the investment bank to grow and to contribute more while consuming less,” C.S. Venkatakrishnan said.

He added that the investment bank “is a critical part of Barclays and will continue to be an important part of Barclays. I’m equally clear that there is a lot more to do. Our investment bank has to be higher returning. And, relatively speaking, it has to become a smaller part of Barclays.”