Barclays PLC (LON:BARC) is expected to announce Thursday the slashing of some 20,000 jobs by the end of 2016, Britain’s Sky News reported Wednesday.
Sky says the bank intends to cut just under 15,000 jobs this year, up from a 10,000-12,000 range indicated at its full-year results in February. It is then expected to cut more than 6,000 more positions over the following two years. Other cuts are also expected to be outlined.
CEO Antony Jenkins will set out the cost-cutting plan in an announcement that will be closely watched by the City of London for evidence that he can successfully trim costs and improve returns to shareholders.
Sky says “insiders” believe Jenkins' plan for Barclays’ future, which will include the creation of a new non-core unit, will distance his strategy from that of his predecessor, Bob Diamond, who sought to lead a global universal bank.
Earlier Tuesday, Reuters reported that Barclays said a collapse in investment bank revenue had hit first-quarter profit and was still hurting income in April.
Income from its investment bank fell 28 percent, largely because of a 41 percent drop in fixed income, currencies and commodities, a trend that is hurting most banks since regulators have forced them to set aside large amounts of money to cover losses from risky trading.
But Barclays' performance was weaker than many rivals, partly because it has started shrinking its business.
Braclays stock was trading down 0.69 percent Tuesday at 1.7 pounds.