Barclays all set to announce sweeping restructuring plan
British lender Barclays Plc is all set to announce a sweeping restructuring plan that would likely cut thousands of jobs and shrink its investment arm.
Trying to get his turnaround plan for Barclays back on track, Chief Executive Antony Jenkins will lay out a revised strategy for the lender on Thursday. His restructuring plan for the lender is expected to cut jobs and pool more assets into non-core segment of the bank.
Some reports suggest that more than 20,000 jobs could be cut before the end of 2016, equivalent to nearly 15 per cent of the bank's total workforce. The plan is also expected to pool around £100 billion worth of assets into a new non-core unit that will be ring-fenced from other businesses of the group.
The non-core "bad bank" portfolio will be handled by Barclays' investment bank's co-head Eric Bommensath. The bank has already marked 56 billion pounds worth of assets as non-core. It could include some of the group's retail banking businesses in France, Portugal, Italy and Spain.
Sky News recently reported that the investment bank could slash as many as 10,000 jobs in the next three years. These job cuts will be in addition to the already announced 12,000 job cuts across the group this year.
Jason Napier, an analyst with Deutsche Bank, said, "Barclays' management has been given all the reasons required to embark on fundamental restructuring of the investment bank in particular."
Barclays' investment arm, which suffered a decline of 28 per cent in fixed income in the first quarter of this year, may suffer the worst brunt of the restructuring as tougher regulations require it to keep more capital to cover risky assets.