Barclays Turns a Loss Into a Gain
“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,” said Barclays (NYSE:BCS) group chief executive Antony Jenkins in a statement released on Tuesday.
Like most major financial institutions, Barclays has faced, and will continue to face, enormous pressures from regulators, the public, and the economy because of the global financial crisis and subsequent scandals, including the manipulation of benchmark interest rates. As a result, many major banks have suffered billions in losses and settlements, and have initiated aggressive restructuring programs aimed at reducing costs, streamlining operations, and sweeping the skeletons out of the closet.
“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,” continues the company’s strategic review statement. All said, the bank will be reducing its headcount by at least 3,700, for which it will incur a restructuring charge of nearly 500 million pounds ($779.90 million) in the first quarter of 2013.
Other financial commitments include…