British bank Barclays to cut 3,700 jobs

Barclays Bank

Barclays, the third largest bank in Britain, is to cut at least 3,700 jobs as part of chief executive Antony Jenkins’ plan to overhaul the bank’s culture and reduce annual costs by £1.7 billion.

Seeking to rebuild its reputation and boost profitability after a series of scandals, Barclays said it would shed 1,800 posts from its corporate and investment banking arm in 2013 and further 1,900 retail and business banking posts in continental Europe this year.

In a speech at the Royal Horticultural Halls in London’s Westminster district on Tuesday, Jenkins unveiled his six-month plan, dubbed “Project Transform,” saying the bank was reforming despite “cynics.”

“Barclays is changing. There will be no going back to the old way of doing things. We are changing the way we do business. We are changing the type of business we do,” he said.

Barclays was fined £290 million when it became the first global bank to admit to manipulating submissions used in calculating the Libor and Euribor benchmark interest rates.

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

Barclays, however, is still paying out £1.85 billion in annual bonuses to its 139,200 staff. Its overall bonus pot will mean each employee gets £13,300 on average, which is lower than the £2.2 billion paid out last year.