Multinational banking and finance company Barclays struggled in the last three months of 2012, leading to the company to post a loss of $1.3 billion.
After a year marked in scandal and misappropriation, officials say they will release 3,700 jobs and close a number of business facilities as part of a reorganization overhaul according to a New York Times report.
After news came out regarding the manipulation of Libor interest rates, a globally recognized benchmark for short term rates, former chief executive Robert “Bob” Diamond was forced to step down last summer. Barclays has announced that in response to the trading and rate-fixing practices, they will shut down a series of offices in Europe and Asia in a bid to improve the company's image.
“There will be no going back to the old way of doing things,” said current chief executive, Antony P. Jenkins during a news conference in London on Tuesday. “We will never be in a position again of rewarding people for activities inconsistent with our values.”
The investment banking portion of the Barclays operation will cut 1,800 jobs, and a bulk of the firings have already taken place according to company reports. The European retail and banking markets will see an additional 1,900 employees cut. The loss is especially staggering, considering Barclays netted a $554 million profit in the same time period in 2011. Much of the loss is attributed to the rate-rigging scandal and legal fees to offset the damage, but Jenkins seems prepared to change the company's direction.
“The old ways weren't the right way to behave, nor did they deliver the right results,” he said. “Individuals must take responsibility for their own behavior.”
The Barclays overhaul will not directly affect business operations in the United States, most notably the Brooklyn Nets' (and Jay-Z-affiliated) Barclays Center arena.
Photo: Neil Hall