Barclays investment banking arm mulls axing 400 jobs: source

12th August 2010, Comments 0 comments

The investment banking arm of Barclays is considering axing 400 jobs worldwide, a source close to the bank said.

Barclays Capital had begun a review "which will result in some job losses," affecting back-office roles such as IT, a spokesman for the British bank confirmed Wednesday.

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

The news came after Barclays announced last week that it had boosted first-half profits by nearly a third thanks to a sharp drop in bad debts, amid signs of revival in the banking sector which suffered in the economic crisis.

Barclays Capital likewise reported strong figures in the six months to June -- but trading revenues at the unit fell 15 percent in the second quarter compared with the previous three months.

The division has a large US business after the purchase of operations from collapsed bank Lehman Brothers in late 2008.

Barclays survived the financial crisis without government support unlike some rivals, because it obtained a seven-billion-pound capital injection largely backed by Abu Dhabi and Qatar -- which have both since trimmed their stakes.

© 2010 AFP

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