Barclays to Unveil Details of Revamp

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May 8 (Bloomberg) –- Bloomberg’s Manus Cranny reports on the impending changes coming to Barclays investment banking unit overhauled by CEO Anthony Jenkins. He speaks to Mark Barton and Anna Edwards on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

We have numbers on job cuts.

At the investment bank, this is the critical piece of this business -- 7000 jobs will go by 2016. this is the area where there has been the most amount of pain in fixed-income commodities.

They will create a bad bank or a non core business.

They will house assets of 115, billion pounds.

7000 jobs are to be eliminated at the investment bank.

It has 26,000 employees.

The question for jenkins is, are you a global investment bank that is more than 1/4 of his staff.

Where those jobs will go, we made for more detail and the strategy update later today.

Overall, at our police they are telling us 14,000 jobs -- overall at barclays they are telling us 14,000 jobs -- in february, the guidance with 12,000 jobs.

4000 -- 14,000 jobs to go by the end of 2014. it looks to me is if they are pulling forward at the timeline on those headcount reductions.

They are targeting a buffer of capital of 11% by 2016. on equity were talking about earlier, costs, a couple of headlines crossing now.

We have cost guidance, ok.

It's going to be 16.3 billion pounds in 2015. -- in 2014, that's 2015. the job cuts have come t hrough.

The return on equity, an ambitious target of 11.5%. they said it will be more than 12%. barfclays to target more that 12%. it does not give us the timeline.

Already it has been delay and he is upping the target.

Trying to get the cost as a proportion of overall income down to 11%. you have been suggesting all morning that this is very significant for barcalslays, because this is a company that's been-- spent years building up the investment bank.

The question is how far that investment is being rolled back.

In terms at which businesses they want to operate, the only clues we have gotten is that there will be a focus international bank with four core businesses.

They will be pushed on where they will not be operating.


Let's put this in context as well.

I sat down with sergio monti.

In other businesses when headcounts are lost, there is a great deal of pain to be had.

A lot of people grandstand this as retribution.

It is tough to let 7000 people within an institution go.

The difficulty that has been found at other institutions, ubs trying to let 10,000 people go.

They only managed to let 4000 people go.

You cannot whine down these businesses like that.

You need credit officers to look after businesses.

It is not an easy execution to do.

For somebody like jenkins, this will be a tough announcement.

It seems as if the financial target for 2016 -- that is bringing his target up from 11.5%. i will get my cheat sheet.

He said 12%. and bring enough for by one year.

That is important.

This is saying to the shareholders, give me the time to deliver on these new targets.

So the questions are are you, global investment bank, still?

These cuts, can you achieve them?

And are these targets realistic?

Thank you very much.

More on mbarclays.

This text has been automatically generated. It may not be 100% accurate.


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