Porker Turbocharged February 11, 2014 Share February 11, 2014 LONDON— Barclays PLC on Tuesday said it will cut up to 12,000 jobs this year as it reshapes its operations and grapples with a major slowdown in its investment bank. The bank, which has been selling loan portfolios and pulling out of European retail banking, posted a widened net loss of £642 million ($1.05 billion) for the fourth quarter, from £589 million in the last three months of 2012. Underlying profit for the full year fell to £5.17 billion from £7.60 billion, reflecting £1.2 billion in restructuring costs and lower revenue across the group. Barclays's investment-banking unit, usually its main profit generator, posted a rare quarterly operating loss of £329 million on higher expenses and declining fixed-income revenue. Fixed-income trading across the industry dried up last year as clients sat out uncertain markets. Despite the unit's stuttering performance, pay rose for many of Barclays's 26,200 investment-banking staff, with the unit's bonus pool up 13%. Restructuring costs hit other parts of Barclays, too, with the U.K. retail bank suffering a 40% fall in operating profit in the fourth quarter as jobs were cut and the bank started opening outlets in supermarkets. Losses widened in Europe, where the bank laid off 1,600 staff and shut 500 branches. Barclays's credit-card business also saw a slump in operating profit from adverse currency effects and rising expenses. Barclays Chief Executive Antony Jenkins said the bank will continue to crack down on costs wherever possible and is taking "bold decisions" to reposition its business. He laid out a restructuring program a year ago to exit unprofitable businesses and shave £1.7 billion from the bank's annual cost base. So far, the program has cost Barclays £1.2 billion, including technology investments aimed at moving more customers online and out of branches. This year, the bank will reduce its 139,600-strong workforce by up to 9%. Around 7,000 of the job cuts will be in Britain, with the rest spread across its global operations. Some of the cuts will be at the highest level, Mr. Jenkins said, with 220 managing directors facing the ax. Barclays's decision to increase staff bonuses for 2013 despite lower revenue and profit prompted a backlash. "It cannot be right in any business for the executive bonus pool to be nearly three times bigger than the total dividend pay out to the company's owners," said Roger Barker, director of corporate governance at the Institution of Directors. "In 2013, the bank paid out £859 million in dividends compared to a staff bonus pool of £2.38 billion. The question must be asked—for whom is this institution being run?" Mr. Jenkins said the decision to increase the bonus pool from last year "is entirely appropriate for the long-term interests of our shareholders and I believe it to be consistent with our values to make sure Barclays is a sustainable enterprise." Analysts said the fourth-quarter and full-year figures largely met their expectations, following earlier guidance from the bank on how the numbers would stack up. Analysts at Espirito Santo said Barclays is doing a good job at improving its leverage ratio, a measure of equity to total assets, with around £140 billion in assets taken off the balance sheet since June and another net £60 billion reduction flagged by the bank Tuesday for completion next year. Some analysts were concerned, however, that toughened capital rules in the U.K. and Europe mean it will take longer than expected for the bank to start paying out higher dividends. The bank's shares fell 4%. ↡ Advertisement Link to post Share on other sites More sharing options...
Vid Hypersonic February 11, 2014 Share February 11, 2014 It has started Link to post Share on other sites More sharing options...
Enye Hypersonic February 11, 2014 Share February 11, 2014 Those who left had golden handshakes Those who stayed continue to earn big bucks Young people continue to aspire towards a banking job Did anything change? Link to post Share on other sites More sharing options...
Wt_know Supersonic February 11, 2014 Share February 11, 2014 nothing change ... fast come fast go ... everyone want to cheong in ... fast and furious Those who left had golden handshakesThose who stayed continue to earn big bucksYoung people continue to aspire towards a banking jobDid anything change? Link to post Share on other sites More sharing options...
Little_prince Supersonic February 11, 2014 Share February 11, 2014 Those who left had golden handshakes Those who stayed continue to earn big bucks Young people continue to aspire towards a banking job Did anything change? no golden handshake from what i'm hearing. forced to resigned mostly Link to post Share on other sites More sharing options...
Nullifi3d 4th Gear February 11, 2014 Share February 11, 2014 Those who left had golden handshakes Those who stayed continue to earn big bucks Young people continue to aspire towards a banking job Did anything change? A business that doesn't make money has to cut cost. I'd like to try replacing Barclays with Microsoft and see if you save the same comments. Link to post Share on other sites More sharing options...
Porker Turbocharged February 11, 2014 Author Share February 11, 2014 (edited) A business that doesn't make money has to cut cost. I'd like to try replacing Barclays with Microsoft and see if you save the same comments. A CEO's job is easy when all he has to do is announce job cuts to massage the P&L. The solution may not be as simple as cutting jobs. But I agree with you that a business should GENERALLY look at cost cutting if it is bleeding. Edited February 11, 2014 by Porker Link to post Share on other sites More sharing options...
Icedbs Turbocharged February 11, 2014 Share February 11, 2014 The bank not bad....pay employees 2.38b in bonuses and only 859m as dividends to shareholders. Look like it is the employees who owns the bank. No wonder everyone wants to work as banker. Link to post Share on other sites More sharing options...
Nullifi3d 4th Gear February 11, 2014 Share February 11, 2014 A CEO's job is easy when all he has to do is announce job cuts to massage the P&L. The solution may not be as simple as cutting jobs. But I agree with you that a business should GENERALLY look at cost cutting if it is bleeding. To be fair, labour is one of the cost intensive components in the bank. It could probably be a situation where the management conducted a comprehensive review of profitability of branches and decided to several close them due to lack of revenue. With closure of branches you get loss of jobs. Also could be relocation of strategic focus from one LOB to another. But yeah, i agree with you the CEO paints a simple picture by announcing job cuts. Link to post Share on other sites More sharing options...
Ender Hypersonic February 11, 2014 Share February 11, 2014 Another case of high bonus to compete for talents failed. Singapore gahment, take note. 1 Link to post Share on other sites More sharing options...
Picnic06-Biante15 Supersonic February 11, 2014 Share February 11, 2014 12000 come to Singapore ? To become bank teller serving customers .... Most of our local banks counters doesn't open fully (2 or 3 counters always closed) and always long queue of peoples... Link to post Share on other sites More sharing options...
Wt_know Supersonic February 11, 2014 Share February 11, 2014 yeah after massive job cut ... within 2-3 quarters the P&L will look damn good then CEO billion dollar bonus ... huat ah! A CEO's job is easy when all he has to do is announce job cuts to massage the P&L. The solution may not be as simple as cutting jobs. But I agree with you that a business should GENERALLY look at cost cutting if it is bleeding. Link to post Share on other sites More sharing options...
Picnic06-Biante15 Supersonic February 12, 2014 Share February 12, 2014 Last year was Citibank and one more bank which I think it was UBS.... So what next, HSBC who was reported last month over Billion Pound ... Link to post Share on other sites More sharing options...
Jman888 Moderator February 12, 2014 Share February 12, 2014 those banks are like a messy garage that people can go in take whatever amount they want and leave. Link to post Share on other sites More sharing options...
Roh96 6th Gear February 12, 2014 Share February 12, 2014 Big chunk of the bonus payout must have landed on those senior management, but big chunk of the layoff should be coming from mid-low level jobs. That is usually the case. Cut until no meat left, then they start cutting higher management. 2 Link to post Share on other sites More sharing options...
Enye Hypersonic February 12, 2014 Share February 12, 2014 A business that doesn't make money has to cut cost. I'd like to try replacing Barclays with Microsoft and see if you save the same comments. my comments are strictly for the banking industry Link to post Share on other sites More sharing options...
Wyfitms Twincharged February 12, 2014 Share February 12, 2014 bro, been a long time since u posted such news.. keep 'em coming! LOL Link to post Share on other sites More sharing options...
Zanter 3rd Gear February 12, 2014 Share February 12, 2014 Preference to be Banker and the like is fading. Seems strange that Investment bankers division can bleed so much? The irony of it is that they are suppose to be in the business of making $. Being an undertaker is very good $. Cos when you wanna buy coffin, you wont think of shopping and buying it online, as you need it urgently. In the state of shock, many are prepared to fork out thousands for what is essentially a rectangular box with some trimmings. Then tie up with monk/priest/pastor can collect commission for last rites. Best of all the customer NEVER complains :P ↡ Advertisement Link to post Share on other sites More sharing options...
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