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Barclays to slash 2 100 jobs

Jan 13 2009 21:04

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London - British banking giant Barclays will cut 2 100 jobs in its investment banking and investment management arms globally, a bank source told AFP on Tuesday.

The source, speaking on condition of anonymity, said the cuts would be made in its Barclays Capital, Barclays Global Investors and Barclays Wealth divisions.

A bank spokesperson, meanwhile, said: "We can confirm that we have begun a consultation process to reduce headcount across some parts of IBIM (investment banking and investment management) to ensure that we are appropriately sized given the current market conditions."

"We will continue to hire selectively across those parts of the business that are growing."

Less than a week ago, Barclays announced plans to cut more than 400 IT jobs, saying it was doing so in order to run a more efficient operation.

Britain's banks have been hit hard as a result of the international financial crisis, and the wider British economy is facing recession.

In October, the government unveiled a half-trillion-pound rescue package, including up to £50bn to buy shares in the country's ailing banking sector.

Barclays rivals Royal Bank of Scotland, Lloyds and HBOS - the latter two of which are now a merged group - have all been forced to take government funds, which came with a price and a state stake, but Barclays has opted to raise capital from private investors.

Earlier this month, though, finance minister Alistair Darling refused to rule out fresh government action to help British banks but insisted it was not his "first port of call."

- AFP

 
 
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