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Barclays shares power ahead on sweeping bonus and job cuts

by Sarah Miloudi on Feb 12, 2013 at 07:28

Barclays shares power ahead on sweeping bonus and job cuts

Barclays shares have powered ahead after the bank said it would cut at least 3,700 jobs as part of Antony Jenkins' drive for change.

At 10am, shares in the bank traded at 312.p, a far cry from their 139p price at the peak of the Libor furore.

Following a strategic review, Barclays said it would slash its headcount and cut costs by £1.7 billion.

Some 1,800 posts will go in the bank's corporate and investment bank division and 1,900 from its Europe retail and business banking arm.

The reductions are expected to result in a restructuring charge of close to £500 million, and elsewhere, more money would be saved and its critics appeased by a 'significant' decrease in Barclays' bonus pot.

For 2012 the average bonus per employee was down 13% year on year to £13,300 and within its investment bank the typical bonus award was cut by17% to £54,100.

Jenkins (pictured), who took over as chief executive following Bob Diamond's departure at the height of the Libor scandal, said he wanted to 'set a new course' for the bank, prompting him to spearhead a drive for change.

'Barclays is changing. We intend to change what Barclays does and how we do it and have set out clear commitments against which our progress can be measured,' he said.

Barclays unveiled news of the job cuts in a statement about its strategic review, previously announced by Jenkins, and issued it this morning to coincide with the bank's final results.

2012 has undeniably been a difficult year for Barclays, involving a probe by the Financial Services Authority (FSA) into its 2008 fund raising and loans to Qatar, the Libor scandal and criticism over its corporate and bonus culture more broadly.

But despite these challenges, Barclays' adjusted pre-tax profits for 2012 were up 26% on 2011 to £7.1 billion, with corporate and investment banking profits rising 46% and wealth management profits jumping 52%.

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