Bar­clays cut­ting 1,000 jobs, 230 elim­i­nated in Asia

The Pak Banker - - FRONT PAGE -

Bar­clays Plc Chief Ex­ec­u­tive Of­fi­cer Jes Sta­ley has started a fresh round of cuts at the in­vest­ment bank, with plans to elim­i­nate more than 1,000 jobs world­wide and exit sev­eral Asian coun­tries, peo­ple with knowl­edge of the mat­ter said.

The UK bank plans to cut about 230 jobs in the Asia-Pa­cific re­gion, in­clud­ing wind­ing up its cash eq­ui­ties busi­ness there, one of the peo­ple said, ask­ing not to be iden­ti­fied be­cause the de­ci­sion isn't pub­lic.

It will exit op­er­a­tions in coun­tries in­clud­ing Aus­tralia, Tai­wan, South Korea and Malaysia and plans to main­tain of­fices in Hong Kong, China, Ja­pan, Sin­ga­pore and In­dia, and keep its prime bro­ker­age and de­riv­a­tives busi­ness in Asia, the per­son said.

Sta­ley, a for­mer JPMor­gan Chase & Co. banker who took over last month, is seek­ing ways to boost earn­ings growth and re­store in­vestor con­fi­dence by fo­cus­ing on the bank's most prof­itable busi­nesses. He and Chair­man John McFarlane are sched­uled to present a broader strate­gic up­date along­side the bank's full-year re­sults on March 1.

"This sug­gests that they are hav­ing to be very ag­gres­sive to have any chance of boost­ing re­turns in the in­vest­ment bank as a whole and it may im­ply a lack of pa­tience by the chair­man in terms of how long this process will take," said Christo­pher Wheeler, an an­a­lyst in Lon­don with At­lantic Eq­ui­ties LLP.

Tur­moil in global equity and com­mod­ity mar­kets is adding to the ur­gency for banks to re­assess which mar­kets and busi­ness lines they want to com­pete in. Stan­dard Char­tered Plc and Royal Bank of Scot­land Plc are among com­pa­nies that have made broad cuts in Asia af­ter de­cid­ing their op­er­a­tions there weren't prof­itable enough. Those re­trench­ments may open the door for some com­peti­tors to take mar­ket share.

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