On Thursday, Barclays (BCS) announced a major paring of its payroll, including significant reductions at its investment banking arm. Investors were enthusiastic about the move, sending BCS stock up more than 7% in morning trading.
BCS shares surged after the struggling British bank said it will cut a total of 19,000 jobs by 2016. About 7,000 of those positions eliminated in the Barclays layoffs will be in its investment bank, Bloomberg notes.
In addition to the Barclays layoffs, BCS said it plans to create a “bad bank” to handle the disposition of $195 billion, including risk-weighted assets linked to its investment banking business and Barclays’ European commercial bank unit. About a quarter of its investment banking staff will lose their jobs in the latest Barclays layoffs.
The Barclays layoffs and other restructuring plans are expected to cost the bank another 800 million pounds on top of previously announced charges.
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