Barclays announces 3,700 job cuts (From Thisisdorset)

Barclays announces 3,700 job cuts

8:13am Tuesday 12th February 2013 in Latest By Paula Roberts

BANKING giant Barclays has said it will cut 3,700 jobs following a strategic review.

The cuts include 1,800 jobs at its investment bank and 1,900 in European retail and business banking.

It comes as the bank reported a plunge in pre-tax profit to £246m in 2012, down from £5.9bn a year ago, after setting aside money for compensating customers mis-sold products.

More than 1,000 people are employed at Barclays House in Poole in a range of sectors.

Asked whether the announced job losses would affect the operation at Poole, a spokesman said it was “primarily about our retail banks in Europe and the investment bank”.

Nearly £2.5 billion of cash set aside to cover mis-selling compensation claims contributed to a plunge in pre-tax profits to £246 million in 2012 from £5.9 billion the previous year.

Barclays said the job cuts, which will take place this year, would result in a restructuring charge of close to £500m in the first quarter of 2013. The cutbacks are aimed at reducing costs by £1.7bn a year by 2015.

Barclays currently employs 140,000 staff.

The bank said its staff bonus pool was down 16% in 2012. The average bonus it paid last year fell 13% to £13,300, while the average bonus paid to staff at its investment bank fell 17% to £54,100.