Hire Wire Aug 02 2011

Barclays Shed 1,400 in First Half, Plans to Cut 3,000 by Year-End

By kyle stock

Barclays reduced headcount by 1,400 workers in the first half of the year and said in an earnings statement this morning that it would trim a similar number of jobs in the second half in a bid to save $1 billion.

"You should assume this trend to continue and increase somewhat," Barclays CEO Bob Diamond told reporters.

Some 1,100 jobs were cut from Barclays retail and business banking unit, while 700 workers were trimmed from its investment bank.

There were pockets of growth, however. The firm added 500 workers to its credit card unit and hired 200 wealth management professionals, in its ongoing effort to grow its business advising the affluent.

Diamond said the wealth business and the firm's operations in Africa had some of the best potential of all divisions.

At the end of the period, Barclays had 146,100 workers. Pay per employee in the six months increased to £41,821 or 5.6% from the year-earlier period, as the company shifted a greater share of compensation from bonuses to salaries.

Barclays said slightly more aggressive job cutting in the second half of the year will temper expenses.

Net income for the six months ended June 30 was £1.5 billion, down from £2.43 billion in the year-earlier period, a 38% drop.

Earnings were dragged down by a £1 billion chunk that Barclays set aside to compensate customers to whom it sold faulty insurance products.

Write to Kyle Stock at kyles@fins.com

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