Barclays is reportedly planning to reduce its workforce by several hundred employees in the investment banking division as part of a long-term strategy to streamline expenses and enhance profitability within the unit, according to a Bloomberg report citing sources. The layoffs are anticipated to impact employees across various departments, including global markets, research, and the investment banking segment. These layoffs are slated to occur in the upcoming months and form a component of the company's routine process of trimming underperforming staff, claims 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,” Barclays said. The company noted that it has not yet determined the exact number of positions to be included in this year's review, as the report.
In response to the worldwide decline in dealmaking and capital markets activity, major Wall Street firms such as Citigroup and JPMorgan Chase & Co. have implemented job cuts in recent months. Similarly, Barclays is initiating a long-term effort to enhance the profitability of its investment bank division, which has been impacted by reduced activity levels and increased turnover among dealmakers.
Barclays has frequently encountered investor concerns regarding the sustainability of its Wall Street operations, as the investment bank utilises more capital compared to other divisions within the firm that yield higher returns. In an effort to address these concerns, Chief Executive Officer CS Venkatakrishnan outlined strategies last month aimed at increasing profitability within the unit. These plans involve a focus on enhancing advisory services and equity underwriting offerings.
As part of its strategic efforts, the company has been realigning its business sectors to prioritise industries expected to experience heightened activity in the foreseeable future. These include financial sponsors and energy firms shifting their focus away from greenhouse gas emissions. In line with this strategy, Barclays secured a mandate to advise Equitrans Midstream on its $5.5 billion sale to EQT, a prominent natural gas producer in the United States, earlier this month.