21st Jan 2016 12:54
LONDON (Alliance News) - Barclays PLC plans to remain a "bulge-bracket" investment bank, the Financial Times reported on Thursday, as the lender outlined plans to cut up to 1,200 staff.
Citing a memo sent to staff by Tom King, the head of the investment banking division, the FT reported that Barclays plans to close many operations in Asia, Brazil and Russia and exit precious metals trading to facilitate the cuts.
"By focusing our business on areas where we have sustainable competitive advantage, we are putting ourselves in a position where we cannot just survive but thrive in a dynamic, complex operating environment," King said in the memo, according to the newspaper report.
Weak fixed income trading volumes, tough regulations and pressure to improve returns have caused top investment banks to reduce staff numbers and withdraw from locations seen as non-core.
http://www.ft.com/cms/s/0/b4430f6a-c032-11e5-846f-79b0e3d20eaf.html#axzz3xsiwmfFJ
Earlier, the Wall Street Journal reported that Barclays will shut its cash equities businesses in Asia and will completely exit two markets in the region, citing a memo sent to clients and people familiar with the matter.
The bank will close down its cash equity research, sales and trading units and its convertible bond trading arm in Asia, the letter said, and will exit Taiwan and South Korea.
At least 250 jobs will go in the region as a result of the changes, WSJ said.
Shares in Barclays were up 1.0% at 183.80 pence on Thursday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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