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Barclays to cut thousands of jobs in investment bank overhaul

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Barclays to cut thousands of jobs in investment bank overhaul

Barclays is planning to thousands of jobs in a radical overhaul of it investment banking division, according to the Financial Times.

The cuts are expected to be announced before the summer and could result in new bosses installed at its European and US divisions, replacing Tom King and Eric Bommensath respectively, according to the paper. Both took on the roles less than a year ago following the departure of former investment banking head Rich Ricci.

The Financial Times said Barclays is likely to redeploy investment bank resources to more profitable parts of the business, including UK mortgage lending and Barclaycard.

The UK's second biggest lender has come under pressure from shareholders to address the problems in its investment banking arm, which has seen costs escalate and profits slump.

In February the bank said it would cut up 12,000 jobs, including more than 800 senior bankers, following a slide in fourth-quarter profit, with the axe falling on around 7,000 UK roles.

The investment bank was a major burden on earnings in the final three months of the year, posting a pretax loss of £329 million versus a profit of £760 million in the corresponding period of the previous year.

Barclays drew criticism by accompanying the weak trading update with news it was awarding staff a 10% larger bonus pot, with a number of investment bankers lined up to be rewarded.

The shake-up in the investment bank follows the restructure of Barclays' wealth management division, which saw 100 senior private banker roles go.

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