Barclays Plc Chief Executive Officer Jes Staley has started a fresh round of cuts at the investment bank, affecting staff in New York, London and across Asia, as he seeks to shrink the securities unit further, according to a person with knowledge of the matter.
The bonus pool for the investment bank may be cut by at least 10 percent from the previous year, said the person, who asked not to be identified because the decision is not public. The bank, which hasn’t made a final decision on compensation, plans to announce bonuses early March, later than the usual mid-February timing, according to a separate person.
Staley, a former JPMorgan Chase & Co. banker who took over last month, is seeking ways to boost earnings growth and restore investor confidence by focusing on the bank’s most profitable businesses. As part of the overhaul, Barclays may cut an additional 20 percent of investment bank staff, with most of the losses in Asia and the global cash equities business, people familiar with the situation said last month.
Staley and Chairman John McFarlane are scheduled to present a broader strategic update alongside the bank’s full-year results on March 1. A spokesman for Barclays in London declined to comment.
The bonus pool at the investment bank fell 24 percent to 1 billion pounds ($1.4 billion) in 2014 from 1.3 billion pounds in the previous year, according to the bank’s annual report. Total compensation costs for the division fell 9 percent to 3.6 billion pounds from 4 billion pounds over the same period.
Barclays has fallen about 17 percent so far this year, tracking a global rout in equity markets, after losing about 10 percent in both 2014 and 2015. Staley was hired after McFarlane fired Antony Jenkins as CEO over the perceived slow pace of restructuring.