Barcap to layoff 600 people

antmavel's picture
Rank: Orangutan | 371

Barclays Capital, the investment banking arm of Barclays PLC, plans to lay off 2.4%, or about 600, of its global staff this week, according to sources close to the matter.

The unit, which has roughly 25,000 workers, has struggled in recent months with a dearth of deals and sluggish trading activity. In the third quarter, BarCap posted 765 million pounds in pretax profit, its worst quarterly showing since early 2009. Its revenue in the three months was down 24% from the year-earlier period.

Early last month, the bank told hundreds of its U.K. employees that they would be cut via a consultation process, wherein a company is legally required to tell fired employees three months in advance of a layoff.

A New York-based worker at the bank said management had booked a number of conference rooms for a round of announcements earlier this week. But those reservations were canceled when a snowstorm dumped about nine inches of snow on Manhattan Tuesday night and Wednesday morning.

Source: http://blogs.wsj.com/deals/2011/01/12/barcap-to-cu...

Comments (43)

Jan 13, 2011

A lot of this is in FO.

Jan 13, 2011

Did anyone get the selection for this round of internships strangely stopped? I did. Strangely is my opinion though.

I know for fact that for some areas they closed applications earlier than the listed date. Could be coincidence though.

Jan 13, 2011

Ohh Bushels now that you mention it, yeah. Randomly got notified my candidacy in the sophomore SA Generation Next thing was terminated, random date far before they said notifications would be going out.

I've been seeing a lot of talk about 2011 being a booming year for M&A though, insight on why this is happening now?

Jan 13, 2011
A Posse Ad Esse:

Ohh Bushels now that you mention it, yeah. Randomly got notified my candidacy in the sophomore SA Generation Next thing was terminated, random date far before they said notifications would be going out.

I've been seeing a lot of talk about 2011 being a booming year for M&A though, insight on why this is happening now?

Good to hear I wasn't the only one with somewhat random closure.

I also heard M&A is looking up 2011. It'd be interesting to find out.

From what I've seen, Barcap appears to be one of the lower-performing segments of the Bargroup. I haven't looked into the reason for this though. US and EMEA tables put barcap still top 10 generally deal-wise by $ value. I don't think its a scale issue. At a glance, they've been relatively aggressive since 07, apparently even hiring through gfc. This could be a run-on effect of deals that fell short of what was anticipated. Could also be from cost-cutting down the line from the two new board hires in the segment around Q409... one from GS, one from Fidelity. But don't know their histories so stabbing in the air atm. Furthermore I dunno which part of Barcap is getting chopped. I haven't looked at their news since they cut my app a month ago.

Jan 19, 2011
GotBushels:
A Posse Ad Esse:

Ohh Bushels now that you mention it, yeah. Randomly got notified my candidacy in the sophomore SA Generation Next thing was terminated, random date far before they said notifications would be going out.

I've been seeing a lot of talk about 2011 being a booming year for M&A though, insight on why this is happening now?

Good to hear I wasn't the only one with somewhat random closure.

I also heard M&A is looking up 2011. It'd be interesting to find out.

From what I've seen, Barcap appears to be one of the lower-performing segments of the Bargroup.

If you're interviewing, I wouldn't mention this for two reasons:

1) "Bargroup" is not a term
2) Even if it was, it's absolutely incorrect. Barclays Capital accounts for the majority of Barclays profits. Check the filings.

Jan 13, 2011

^ why would that be strange given that they are going to fire 600 people?

Jan 13, 2011

might not have been the only reason

Jan 13, 2011

There's nothing strange about this. All IBs trim staff yearly in underperforming areas

Jan 13, 2011

I was under that impression that the "boom" of 2011 for M&A was more so in the MM space. Could be wrong on that but that's been the talk in my neck of the woods.

If I had asked people what they wanted, they would have said faster horses - Henry Ford

Jan 13, 2011

These still happened yesterday, unfortunately.

Jan 13, 2011
HerSerendipity:

These still happened yesterday, unfortunately.

In the NY office ? Do you know which groups specifically ?

Jan 13, 2011

How likely is this to affect US layoffs? I Summered @ Barcap and will be returning for full-time (Tech); should I be concerned? This is a little frightening...

Jan 13, 2011

Yes, in NYC. It was all across the board. A bunch in global finance (which includes dcm/ecm/lev fin/etc.) and in coverage.

Jan 13, 2011

HS, do you know if they're done with the layoffs ? my roommate works there and I need to know if I'm going to have to look for a new apt soon.

Jan 13, 2011

No clue if they're done or not. I would think it'd take more than 1 day...

Jan 13, 2011

Allright, thanks.

Jan 13, 2011

They're not done in NYC. Bunch of layoffs across the IBD yesterday and today.

Jan 13, 2011

Yep. Just found out. This sucks.

Jan 13, 2011

Would this affect Hong Kong office or Asia Pacific offices in general at all?

Jan 13, 2011

probably

Jan 14, 2011

Thanks for the info serendipity, genuinely helped out a friend of mine.
SB to you. Threads like this add a heck of a lot of value to WSO.

Jan 18, 2011

hmm...have a superday with Barcap HK this weekend...should I pretend I'm oblivious to this?

Jan 18, 2011
perpetualmotion:

hmm...have a superday with Barcap HK this weekend...should I pretend I'm oblivious to this?

I would bring it up with someone you are comfortable with. You want to show that you really know the company and if you are wasting your time interviewing.

Jan 18, 2011

only back office in HK, front office is being aggressively expanded. they just hired a bunch of M&A bankers from MS

Jan 18, 2011
ibhopeful532:

only back office in HK, front office is being aggressively expanded. they just hired a bunch of M&A bankers from MS

Second this obs. Barclay is giving out ridicously high compensation package to 2nd MBAs (don't ask the number, but it's just above, above HK avg) and HK just started their biz so they are pretty safe

Jan 18, 2011

Had two rounds a couple weeks ago and heard nothing since.. this makes more sense.

Jan 18, 2011

appears research got hit pretty hard as well.

Did trading get whacked too? Would think the fixed income guys would be.

Jan 19, 2011

@Omoba: much of these layoffs is within global finance though...it seems like if they're trimming underperforming areas they should be axing people in S&T as people above have mentioned.

People tend to think life is a race with other people. They don't realize that every moment they spend sprinting towards the finish line is a moment they lose permanently, and a moment closer to their death.

Jan 19, 2011

Would now be a bad time to make an initial outreach to someone in Barcap IBD (assuming you share a solid commonality)?

Jan 19, 2011
swagon:

Would now be a bad time to make an initial outreach to someone in Barcap IBD (assuming you share a solid commonality)?

i'm curious about this too - in the same situation

Jan 19, 2011
swagon:

Would now be a bad time to make an initial outreach to someone in Barcap IBD (assuming you share a solid commonality)?

You might get a bounceback..

Jan 19, 2011
HerSerendipity:
swagon:

Would now be a bad time to make an initial outreach to someone in Barcap IBD (assuming you share a solid commonality)?

You might get a bounceback..

Well, of course that is a possibility. I'm assuming that doesn't happen...any serious answers?

Jan 19, 2011

Barclays just over-hired. While ~10% were layed off, it was really only the very bottom performers. Everyone is going on as if nothing happened, as should you. Most of IBD is still expanding, and many groups are being aggressive about it. I wouldn't bring it up in an interview, and I also wouldn't fret about reaching out to someone.

Jan 19, 2011

BarCap is shitty outside of energy anyways.

Jan 19, 2011

BarCap is shitty outside of energy anyways.

Jan 20, 2011
HBS_or_Bust:

BarCap is shitty outside of energy anyways.

Agree - shitty outfit trying hard to be a big league player....

Jan 20, 2011

Funny, guys.

Jan 20, 2011

capitalist institution exploits workforce? Crazy world we live in.

i think the problem of the banking world (one of) is the expectation of a bonus. So your salary is socially acceptable but bonus isn't, plus its kept off written records so only you and the person that sets it knows it. I understand where you're coming from, but it reads a bit like the Icelandic 8% interest rates. No such thing as free money.

personally, i think they are the barcap fallguy for the year when bonuses are paid. last year was diamond and he wont be so keen to do that again. Being in a prop firm i'm not overly concerned.

Jan 20, 2011

eh, shit happens.

Jan 20, 2011
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Jan 20, 2011
Comment

People tend to think life is a race with other people. They don't realize that every moment they spend sprinting towards the finish line is a moment they lose permanently, and a moment closer to their death.