As M&amp;A transactions and IPO activities have entered a freeze, leading to a significant decline in investment banking revenue, Barclays Bank of the UK is reportedly preparing for a large-scale layoff in its investment banking division to boost profit margins and reduce costs.
According to media reports citing sources, this round of layoffs will affect positions including trading, M&amp;A advisors, and research, and will focus on eliminating underperforming employees based on annual performance evaluations.
A spokesperson for Barclays Bank told the media:
<blockquote>
We regularly review our talent pool to ensure that resources are allocated to outstanding talents, implement our strategies, and provide excellent services to our clients. However, the specific number of people under review this year has not been finalized yet.
</blockquote>
As of the time of writing, Barclays Bank's stock price has risen by approximately 3%.
The inevitable nature of this round of layoffs is mainly due to the current ice age in M&amp;A restructuring and IPO activities, which has led to a sharp drop in investment banking revenue. To address the unfavorable situation, Barclays Bank, under the leadership of new CEO C.S. Venkatakrishnan, is comprehensively advancing a painful transformation plan that will reduce costs by £2 billion in the next two years, optimize more profitable lending businesses, and reduce reliance on the investment banking division.
Earlier reports also indicated that Barclays Bank plans to lay off 1,500-2,000 back-office staff to save approximately £1 billion in costs. The bank had already laid off 5,000 people in 2023.
Industry insiders point out that with the global economic slowdown, rising interest rates, and escalating geopolitical risks, 2023 is one of the toughest years for the investment banking industry in recent years. With major investment banks experiencing sharp declines in traditional core business revenues such as M&amp;A and capital markets, accelerating adjustments and layoffs have become an undeniable reality

The ice age of mergers and acquisitions restructuring and IPOs is still ongoing

Report: Barclays to lay off hundreds of employees again