The UK lender’s move to further cut its workforce at investment banks reflects a slowdown in deal-making activity, Sky News has learned.
By means of Mark Kleinman, city editor @MarkKleinmanSky
Sunday, April 16, 2023 8:35 PM, UK
Barclays joins the ranks of global investment banks taking the ax to jobs amid a slowdown in deal closings and IPOs.
Sky News has learned the UK lender will cut more than 100 positions at its investment bank this week, with sources saying the layoffs will not be limited to any single country or position within the company.
While the layoffs are modest in scope, they point to further efforts by executives to reduce costs during a difficult period for the global economy, with sharp declines in merger activity in some markets in recent quarters.
Barclays reportedly cut about 200 jobs at its investment bank last November, making the latest cuts the second round in less than six months.
Citi, Goldman Sachs and Morgan Stanley have collectively cut thousands of jobs since the turn of the year.
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The layoffs came despite rising interest rates being partly responsible for banks’ improved profitability, with three of the largest US banks reporting higher-than-expected earnings last week.
Nevertheless, last month was one of the most turbulent in global banking since the 2008 financial crisis.
The collapse of Silicon Valley Bank in the US and subsequent ones rescue takeover of its UK branch by HSBCstressed the problems caused by rapid rate hikes by central banks.
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The emergency acquisition of Credit Suisse by Swiss rival UBS was the most significant global banking deal since the banking collapse 15 years ago, and has sparked fears – which Bank of England Governor Andrew Bailey, among others, has tried to quell – of a new systemic crisis.
A Barclays spokesperson declined to comment.