Barclays To Remove Underperformers In Investment Banking Division: Report
Portfolio Pulse from Lekha Gupta
Barclays PLC (NYSE:BCS) is set to cut hundreds of jobs in its investment banking division as part of its annual review process, aiming to dismiss underperformers. This move follows a challenging year for dealmaking in the banking industry and is part of Barclays' strategy to focus on expanding its higher-returning consumer bank. The bank also plans to save costs and boost profitability by reducing up to 2,000 jobs. Despite a 3% year-over-year decrease in total income for Q4 FY23, Barclays is optimistic about its 2024 projections, including a notable NII for Barclays UK. Additionally, Barclays has increased the purchase price for certain cash tender offers.
March 21, 2024 | 10:19 am
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Barclays PLC is reducing its investment banking workforce to focus on high-performing talent and expand its consumer bank, following a challenging year in dealmaking. The bank also aims to enhance profitability through cost savings and has optimistic revenue projections for 2024.
The job cuts at Barclays are part of a broader strategy to focus on high-performing areas and consumer banking, which could lead to improved efficiency and profitability. However, the reduction in workforce and the recent financial performance indicate potential short-term challenges. The positive premarket stock movement suggests a mixed investor reaction, balancing the cost-cutting measures with concerns over recent performance and the broader banking industry's challenges.
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