Barclays' cuts: leveraged finance, tech juniors hit
The lag between layoffs being flagged and layoffs happening is not a long one. Following suggestions earlier this week that the bank would be cutting 100 people in investment banking, sources internally said the cuts took place today.
In London, the cuts were understood to hit multiple juniors in technology banking and an underperforming associate in leveraged finance. In New York, where the cuts were thought to be heavier, there were reports that investment banking coverage groups were being hit across the board and that analysts were being let go.
Barclays declined to comment.
The cuts come after Barclays appointed Cathal Deasy global head of banking, based out of New York, in January. In normal circumstances, Deasy might want to hire some bankers from his former employer (Credit Suisse) for his team. In current circumstances, his hands may be tied - unless he clears quite a bit of space for former colleagues.
Barclays is cutting M&A bankers despite what appears to have been a good start to the year. Dealogic said Barclays earned $264m in M&A revenues globally in the first quarter and ranked fifth, from 10th in the first quarter of last year, when the bank said its advisory revenues were $185m.
Across the market as a whole, though, European and US leveraged finance revenues were down nearly two thirds in the first quarter. Barclays' leveraged finance business has undergone some changes in the past year. JF Astier, the historic head of global leveraged finance, has become a chairman of the investment bank after being named co-head of the investment bank and then demoted in January. In Europe, Barclays named veteran banker, Na Wei, its head of European leveraged finance last February and promoted her to global head of leveraged finance this week.
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