Barclays (BCS) to Increase Job Cuts as Profits Slump
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In a continuing theme for Wall Street, London-based bank Barclays (NYSE: BCS) is expected to make further cuts to its workforce over the next several months.
Sources suggest Barclays will eliminate another 3,000 jobs from its headcount, tacking on to the 1,400 job cuts already announced since the beginning of 2011.
The move comes following a 38 percent drop in profit for the first six months of 2011. Net income fell from £2.4 billion to £1.5 billion, or $2.4 billion. Primary factors for the drop include high costs related to customers who received incorrect advice on payment insurance, as well as a drop in investment bank earnings.
Despite the drop, the numbers beat consensus estimates.
With the quarterly results, CEO Bob Diamond said job cuts in the second-half will continue and likely increase somewhat.
The firm has set aside about £1.8 billion for bad loans and other credit risks.
Barclays shares are up 1.4 percent minutes after the opening bell Tuesday.
Sources suggest Barclays will eliminate another 3,000 jobs from its headcount, tacking on to the 1,400 job cuts already announced since the beginning of 2011.
The move comes following a 38 percent drop in profit for the first six months of 2011. Net income fell from £2.4 billion to £1.5 billion, or $2.4 billion. Primary factors for the drop include high costs related to customers who received incorrect advice on payment insurance, as well as a drop in investment bank earnings.
Despite the drop, the numbers beat consensus estimates.
With the quarterly results, CEO Bob Diamond said job cuts in the second-half will continue and likely increase somewhat.
The firm has set aside about £1.8 billion for bad loans and other credit risks.
Barclays shares are up 1.4 percent minutes after the opening bell Tuesday.
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