The bank eliminated 3000 jobs in the second quarter and is offloading businesses including its automated options business in New York.
Thursday 12, September 2019
Barclays is making cuts to its Japanese fixed income business as Chief Executive Officer Jes Staley slashes costs globally to counter weak profits at its markets unit, reported Bloomberg.
The British bank is parting ways with several salespeople and traders in Tokyo.
Barclays joins Societe Generale and Deutsche Bank in cutting their fixed income divisions, which are in the business of trading bonds.
Banks are contending with a decade of low and negative rates, eroding trading profits—and with no end in sight as the European Central Bank remains in easing mode. Japan has been in a similar environment for years. Deutsche Bank moved to eliminate workers in high yield trading last week, while SocGen has focused the deep cuts to its markets division in fixed income.
Barclays’s corporate and investment bank posted a four per cent fall in half-year income to GBP 5.2 billion ($6.4 billion) in August, hit by lower banking fees and a six per cent decline in markets income. Operating expenses for the unit were stable at GBP 3.6 billion.
Staley has faced criticism from some shareholders over the performance of the investment bank, which is a centrepiece of his strategy.