31 October 2014

Barclays to chop 3700 jobs and review 75 business units in drastic restructuring

12 February 2013  |  1061 views  |  0 Source: Barclays

Antony Jenkins, Barclays PLC ("Barclays"), Group Chief Executive said today: "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. Our goal is to make Barclays the 'Go-To' bank for all our stakeholders. The plan that we set out today is critical to delivering that goal.

Our plan is built on a rigorous review of 75 distinct business units to determine not only their ability to generate an appropriate and sustainable return on equity, but also their strategic attractiveness, including their impact on Barclays reputation. We expect to make good progress towards our financial commitments by 2014 and deliver them fully during 2015.

We have today set out a new course for the future of Barclays. I am extremely proud of the way our 140,000 staff have overcome the difficulties of the last year and shown the resilience necessary to deliver the results we announced this morning. It gives me great confidence in our ability to deliver our goal and from today I am determined that no-one should be able to question our intent or our commitment to the path that I have set out."

Commitments

Based on the results of its strategic review, Barclays is today making several commitments. Barclays seeks to:

Financial commitments

Deliver a return on equity for the Group in excess of the Group cost of equity in 2015, which we have assumed will remain at the current 11.5% level;
In 2013, reduce headcount by at least 3,700 across the Group, including 1,800 in the Corporate & Investment Bank and 1,900 in Europe Retail and Business Banking. This is expected to result in a restructuring charge of close to £500m in Q1 2013;
Reduce the Group's total cost base by £1.7bn to £16.8bn in 2015, including interim cost estimates of £18.5bn and £17.5bn in 2013 and 2014 respectively. This excludes 'one-time' costs to achieve the strategic plan of £1bn in 2013, £1bn in 2014 and £0.7bn in 2015, delivering a Group cost to income ratio in the mid 50s in 2015;
Target Risk Weighted Assets (RWAs) of £440bn by the end of 2015, after mitigating the estimated impact of CRD IV (£81bn) through legacy asset and other RWA reductions (£75bn), enabling RWA investment in selected areas;
Report a transitional Common Equity Tier 1 ratio above its target ratio of 10.et ratio of 10.5% in 2015; and
From 2014, accelerate our progressive dividend policy, targeting a payout ratio of 30% over time.

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