Barclays Plc is preparing to cut about 200 positions across its investment bank as soon as next week, according to people familiar with the plans. The reductions will hit staff of varying seniority, primarily in New York and London, and are scheduled to begin as early as Tuesday.
The targeted cuts come on top of roughly 5,000 job reductions Barclays announced last month across the wider bank. That broader restructuring is part of Chief Executive C.S. Venkatakrishnan’s effort to streamline the lender’s cost base and improve returns at a time when dealmaking and trading revenues remain under pressure.
A routine efficiency review
People close to the bank said the latest investment bank reductions are part of Barclays’ regular annual performance and efficiency review. Rather than a wholesale retreat, the process is designed to reallocate capital toward areas the bank sees as higher priority while trimming roles that no longer fit its strategy.
The move reflects a wider trend among global investment banks, which have been cutting headcount and reshaping teams in response to uneven deal flow, higher funding costs and increased competition for top revenue producers.
Focus on costs and returns
Barclays has been under consistent pressure from investors to improve profitability, particularly in its investment bank. While the unit has had strong periods in fixed income trading, advisory and underwriting revenues have been more volatile as clients delay mergers, acquisitions and public offerings.
The bank's leadership has signaled that managing expenses is a priority. The roughly 5,000 cuts announced in October span technology, operations and support functions across the group. The additional 200 investment bank reductions show that front-office roles are also being scrutinized.
What it means for staff
Employees affected by the cuts are expected to be informed in the coming days. Barclays typically provides severance and outplacement support, though the exact terms will vary by location and role. The split between London and New York suggests the reductions are hitting both sides of the Atlantic, reflecting the global nature of Barclays' markets and banking franchise.
Market reaction
Barclays shares have gained ground this year as investors have welcomed signs that management is taking a harder line on costs. The bank is scheduled to report full-year results early next year, when Venkatakrishnan is expected to provide more detail on how the restructuring is progressing and where he sees the investment bank's long-term role in the group.
For now, the message is clear: even as markets stabilize, Barclays is continuing to tighten its operations and reshape its workforce to match a slower revenue environment.
