Barclays increases job cuts to 14,000, half in Investment Bank

8th May 2014 08:10

Barclays has unveiled plans to cut 14,000 jobs across the group as part of a strategy update aimed at creating a 'leaner, stronger' bank. In what it described as a "bold simplification" of the group, Barclays said it would become a focused international bank, costing it a further £800m, in addition to the original £2.7bn announced in February 2013. Looking further ahead, the group said it planned to cut 7,000 jobs from its Investment Bank by 2016, by which point it aims to have reduced costs to less than £14.5bn for the core business. Group costs for 2014 have been adjusted to around £17bn, falling to £16.3bn next year, excluding transformation costs of around £1.6bn in 2014 and £0.5bn in 2015. The dividend payout will remain at 40% of the group's adjusted earnings until the CET1 capital ratio rises above 10.5% as it moves towards the 2016 targets. The new targets come as part of a wider restructuring, which will see the bank focus on four core businesses; Personal and Corporate Banking, Barclaycard, Africa Banking and the Investment Bank. It has also created Barclays Non-Core, a unit which groups together the assets do not fit the strategic objectives or returns criteria underlying the strategy review, it explained. The group plans to exit or run down these assets, which include around £115bn of risk-weighted assets (RWA), the majority of which are in the Investment Bank. Chief Executive Antony Jenkins, pictured, said: "This is a bold simplification of Barclays. We will be a focused international bank, operating only in areas where we have capability, scale and competitive advantage. "In the future, Barclays will be leaner, stronger, much better balanced and well positioned to deliver lower volatility, higher returns, and growth." He added that his goal remained the same: "To create a Barclays that does business in the right way, with the right values, and delivers the returns that our shareholders deserve."The news prompted a 2.75% rise in shares to 250.00p early on. NR