Barclays LON: BARC has announced it will cut up to 3,700 jobs in the next 12 months, the announcement came from Mr Jenkins the new Chief Executive Office of Barclays PLC LON: BARC. This is stemmed from a long term overhaul that was well and truelly needed from Barclays PLC after the recent Payment Protection Insurance (PPI) scandal that will cost the banking sector over £25 Billion in total to compensate it’s customers.
Barclays PLC realises that it’s tactics over the last 20 years has been too aggressive and Mr Jenkins gave the following quote
“The behaviours which made headlines during the year stemmed from a period of 20 years in banking in which the sector became too aggressive, too focused on the short-term, and too disconnected from the needs of customers and clients, and wider society,” he said.
“Barclays was not immune from the impact of these trends, and we suffered reputational damage in 2012 as a consequence,” he added.
This has a massive impact on Barclays PLC stocks LON: BARC that plunged following the announcement profits are down from £5.1 Billion in 2011 to £246 Million in 2013
Stocks have gone from 315.15 to 313.25 in just over 12 hours of trading, this spells a huge lack of confidence in the banking giant.
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