Barclays Plans to Trim IB Workforce by More Than 200 to Reduce Costs

Core Viewpoint - Barclays PLC (BCS) plans to reduce 3% of its workforce in the investment banking division to enhance profitability, as reported by Bloomberg [1]. Workforce Reduction - More than 200 employees in investment banking, global markets, and research are expected to be affected, including managing directors [2]. Strategic Focus - The job cuts aim to expand Barclays' capability to invest in priority areas, particularly in European rates, equity derivatives, and securitized product trading, with an anticipated revenue boost of £500 million by 2026 [3]. Revenue Growth Areas - Barclays is focusing on growing revenues from equity capital markets and mergers and acquisitions, specifically in the health care, industrial, technology, and energy transition sectors, while maintaining its transatlantic investment banking model [4][5]. Efficiency Improvement - The workforce reduction aligns with Barclays' efforts to improve efficiency by streamlining operations and focusing on core businesses [5]. Recent Developments - Barclays has made several strategic moves, including a collaboration with Brookfield Asset Management to transform its payment acceptance business and divesting its Germany-based consumer finance business [6]. Over the past six months, Barclays shares have increased by 36.3%, outperforming the industry growth of 23.1% [6]. Industry Context - Other global banks, such as Citigroup and HSBC, are also implementing workforce reductions and business simplifications to improve operational efficiency [9][10].