Barclays to Close Several Businesses in Asia, Cut Around 1,000 Jobs
The U.K. bank will shut regional cash equities operations, fully exit from Brazil, Russia, Taiwan and South Korea
Barclays PLC Thursday said it would refocus its investment bank in the U.K. and the U.S., cutting around 1,000 jobs, mainly across Asia.
The U.K.-based lender is closing its cash equity research, sales and trading and its convertible bond trading businesses in Asia.
The bank will also exit several countries including Brazil, Russia, Taiwan and South Korea, according to a letter and memo sent to staff by Barclays’ investment banking chief executive Tom King.
The bank is trimming the suite of products it offers out of the U.S. and is weighing whether to exit its precious metals business, the memo added. The restructuring is expected to result in the loss of around 1,000 jobs, according to a person familiar with the matter.
Since his arrival late last year, new chief executive Jes Staley has accelerated a strategy to refocus the U.K. bank on its more profitable businesses.
The bank is drawing up plans to sell some of its 62% stake in Barclays Africa Group Ltd., the publicly traded entity that houses most of its African business. Barclays is also trying to sell a range of assets in Europe.
Barclays had been building out its equities business in Asia over the past five years as part of a broader push to grow in the region. But in 2014 it effectively called time on its plan to be a global investment bank, announcing it would cut 7,000 jobs in the unit around the globe.
In Asia it never gained scale. Barclays ranked 29th in terms of Asia-Pacific investment banking revenue in 2015, down from 26th in 2014, according to Dealogic.
The bank will continue to keep some businesses operating in the region. Barclays said it would retain its prime brokerage business. The lender will also keep its bonds, currencies and commodities trading and investment banking advisory businesses, as well as its equity derivatives business, a person familiar with the matter said. Offices will remain open in India, China and Japan.
The bank will pull out of Australia, South Korea, Taiwan, Indonesia, Malaysia, Philippines and Thailand. Coverage of macro products will be offered from other locations.
Barclays also reaffirmed its attachment to its U.S. franchise. The U.S. is “one of our two home market franchises, in the world’s largest single pool of capital, our leading U.S. business is another distinct competitive advantage for Barclays,” Mr. King said in the memo.
Source: WSJ – Barclays to Close Several Businesses in Asia, Cut Around 1,000 Jobs
