Barclays cuts more than 200 investment bank jobs to reduce costs
[LONDON] Barclays is preparing to cut more than 200 jobs in its investment bank in the coming days as part of chief executive officer CS Venkatakrishnan's plan to boost the profitability of the division.
Staffers in investment banking, global markets and research will likely be affected, according to people familiar with the matter, who asked not to be named discussing personnel. Managing directors will be the most senior roles affected, they added. The reduction represents about 3 per cent of the investment bank's headcount.
The cuts are meant to give the bank more capacity to invest in priority areas, one of the people said. In markets, the bank has been focused on boosting its market share in European rates, equity derivatives and securitised product trading.
In investment banking, the firm has been looking bolster the revenue it generates from equity capital markets and mergers and acquisitions, in particular across the health care, industrial, tech and energy transition industry groups.
The move is not a sign that the bank is retrenching away from any products or asset classes, the person added. Although it's prioritising growth elsewhere, Barclays has committed to its costly transatlantic investment banking model in the face of pressure from investors over the years.
'Like other banks, we regularly review our talent pool as part of our ongoing business operations to ensure continued investment in priority areas,' a Barclays spokesperson said in a statement. The lender made similar reductions just over a year ago.
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Cost cuts
Venkatakrishnan has been under pressure to boost returns across the investment bank, which consumes large amounts of capital compared with other, higher-returning parts of the business. He has said the division won't be allocated any additional risk-weighted assets from the parent company in the coming years, even as it navigates higher capital requirements from global regulators.
The CEO set out a new strategy last year that anticipated about £2 billion (S$3.5 billion) of efficiency savings across the bank by 2026, helping to boost earnings and return £10 billion to investors.
Barclays' investment bank is by far its largest division, generating £11.8 billion in revenue in 2024, up 7 per cent from a year earlier. The bank is known as a powerhouse in fixed-income markets – though it's been investing heavily in its prime and equity divisions in recent years to catch up to rivals.
Many changes
As part of the investor update last year, Barclays said its work to gain share in European rates, equity derivatives and securitised products trading would help it boost revenue by £500 million by 2026. Meanwhile, the push to get back to the 4 per cent market share it last had in advisory and underwriting in 2019 was supposed to yield £700 million in income growth within investment banking.
To pull off those goals, the bank has been appointing key leaders and has made several high-profile hires. For instance, it added former Centerview Partners LLC partner Andrew Woeber as its global head of M&A in April and Royal Bank of Canada's John Kolz joined in March to co-run equity capital markets globally.
The bank has seen its market share in investment banking inching upward after it had roles on deals including Alphabet Inc.'s US$32 billion purchase of Wiz and Sunoco LP's acquisition of Parkland Corp. for about US$9.1 billion including debt. Within markets, revenue for the first three months of the year jumped 16 per cent as the firm's stock traders posted their best quarterly haul in almost three years.
Investors seem to be happy with the bank's progress so far, with shares up about 24 per cent this year. That's better than the 8 per cent advance of the FTSE 100 index. BLOOMBERG
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PHOTO: STATION BY KOTUWA He used to run Fool Wine at the Boon Tat Street space before turning it into Station in March 2025 . 'Kotuwa has been amazing,' says the chef of the restaurant, which serves the vibrant food of his heritage, together with cocktails built around Sri Lankan and other spirits. Diners can also order a $68 a person snack-to-dessert feast featuring the restaurant's greatest hits. 'We wanted to see if that success could translate, and we built a CBD version of Kotuwa, and that has been doing really well for us.' He says his fine-dining restaurant Cloudstreet has had its ups and downs. 'Having a diverse portfolio of restaurants helps. It allows us to balance out the slow months with the stronger ones.' Mr Russell Yu, 39, runs casual Japanese chain Nozomi, with outlets at Millennia Walk and Star Vista; and The Horse's Mouth gastrobar at Millenia Walk. He says business at Nozomi has improved since a tough spell from December 2024 to February 2025. 'The stronger performance likely comes down to price point and value. With an average spend of $38 to $43 a diner, and a focus on quality ingredients, we may take a hit on margins, but we continue to offer strong value to guests , and that's resonating with them . 'Restaurants that offer strong value are generally holding steady, but those with an average spend at or above $60 a head are facing greater challenges. The recent closures of several relatively high-profile establishments have been surprising. But for many of us operators, the situation has been, and remains, precarious.' It might become even more precarious when the Rapid Transit System (RTS) linking Johor Bahru (JB) and Singapore starts operating in end-2026. People will be able to travel from Woodlands North MRT station to JB's Bukit Chagar station in five minutes. Jewel Coffee's Mr Khong says: 'I would imagine the bulk of JB visitors now are car owners. But with the RTS, non-car owners will not hesitate to go to JB. 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Our focus will be on delivering exceptional value and experiences to both local and international diners, adapting our offerings to evolving preferences.' Despite the never-ending struggles with rent, manpower and cost of ingredients, some are opening new restaurants. Mr Vadim Korob, 34, managing director of Altro Zafferano, an Italian restaurant at Ocean Financial Centre, says there are plans to expand the portfolio, which now includes Griglia Open Fire Italian Kitchen in Craig Road. He will soon open a steakhouse in Amoy Street, and intends to add two more restaurants down the road. He says sales have increased for the existing restaurants. Altro Zafferano pivoted to more casual dining, with flexible menus that include sharing dishes. 'We are hopeful for 2026,' he says. 'With the upcoming steakhouse launch and plans for two additional concepts in the pipeline, we are looking forward to a strong year ahead.' Chef Joel Ong, 37, who runs Enjoy Eating House & Bar in Stevens Road and The Canteen by Enjoy in Jalan Besar, recently opened Heartland by Enjoy in Tampines, a n all-day cafe serving nasi lemak (priced from $12.90) and zi char dishes. It opens at 10.30am on weekdays and 9.30am on weekends, and closes every day at 2am. With most dishes priced under $20, the average spend a person is about half that of his other restaurants. He says: 'We want to maximise our earning potential, even if it means sacrificing our own time.' Nasi Lemak with beef rendang at Heartland by Enjoy. PHOTO: HEARTLAND BY ENJOY Neither Enjoy nor Canteen are doing well day to day, he says, adding that salaries make up the bulk of costs. He says: 'We chose to open a new restaurant without hiring many staff, and we pull everyone together to work harder, in the hopes of increasing revenue. 'It seems counter-intuitive when we say we have opened another restaurant in order to survive, but it is true.' Heartland by Enjoy in Tampines is an all-day cafe serving nasi lemak and zi char dishes. PHOTO: HEARTLAND BY ENJOY Tan Hsueh Yun is senior food correspondent at The Straits Times. She covers all aspects of the food and beverage scene in Singapore. Check out ST's Food Guide for the latest foodie recommendations in Singapore.
AsiaOne
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Berlin to simplify rules in bid to speed up defence surge, draft law says, World News
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