Barclays Plc (BARC), Britain’s second-biggest lender by assets, is eliminating at least seven posts in its Scandinavian and continental European fixed-income teams as part of its job cuts across the investment bank, according to people with knowledge of the matter.
Those employees leaving offered rates and foreign exchange services to European and Scandinavian customers and are based in London, said the people, who asked not to be identified because the decisions haven’t been made public.
The cuts are part of part of the 7,000 reductions Chief Executive Officer Antony Jenkins plans to make by 2016 to revive profitability. Barclays has been hurt by a decline in revenue from trading fixed income, currencies and commodities -- traditionally its biggest source of revenue -- and regulatory demands to boost capital.
“The rising cost of capital as the Basel rules impact risk-weighted assets and leverage ratios has made banks more thoughtful about how they deploy their capital,” Kevin McPartland, head of market-structure research at consulting firm Greenwich Associates, said by e-mail. “Shrinking and merging teams creates considerable cost efficiencies.”
Representatives at Barclays declined to comment on the departures. Barclays fell 0.5 percent to 242.9 pence in London trading for a market value of about 40 billion pounds ($67 billion). The shares have fallen 11 percent this year, making Barclays Britain’s worst-performing bank stock in the period.
Iskandar Vanblarcum, managing director and head of Northern European foreign exchange sales, Christian Ahrling, managing director in Scandinavian rates sales, and Christophe Gioffredo, managing director and head of France foreign-exchange sales, are among those who have been told their jobs are at risk of being cut and given a set period of time to find other positions within the bank or leave, the people said.
Others leaving include Andrea Iannelli, director in Italian foreign exchange sales, Hans Van der Putten, managing director in Dutch sales, Mikael Nilsson, an economist focusing on Sweden and Norway, and Jonas Andersson, a director in Scandinavian sales, the people said.
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