BarCap 'to cut 200 UK jobs after review'

13 January 2011

Investment bank Barclays Capital is poised to make around 200 of its British staff redundant as a result of difficult trading conditions in the wake of the economic downturn, it has been claimed.

According to Reuters, a source close to the firm revealed that BarCap will also cut workers in Asia and the US following an internal staffing review, after sacking a total of 400 employees back in August last year.

The European sovereign debt crisis had a significant impact on the activities of the continent's financial sector, with a number of banks laying workers off. Concerns linger about some countries in the troubled eurozone.

Newly-appointed Barclays chief executive Bob Diamond - formerly the boss of BarCap for 14 years - is currently reviewing the bank's overall returns and is due to reveal his findings on February 15th 2011.

The report came after the Telegraph revealed research from UBS indicated BarCap had been outperformed by rival RBS Global Banking Markets, with the latter generating a 14 per cent return on equity in 2010 as opposed to the former's ten per cent.

By Claire Archer

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