Barclays Plc is likely to slash about 3,000 jobs following its purchase of beleaguered Lehman Brothers' North American investment banking and capital markets businesses.
NEW YORK: UK banking major Barclays Plc is likely to slash about 3,000 jobs following its purchase of beleaguered Lehman Brothers' North American investment banking and capital markets businesses, a media report said.
The layoffs would amount to over 10 per cent of combined investment banking and trading operations, according to a report by American Business publication Fortune.
The report stated that Barclays president Bob Diamond is overseeing the integration of Lehman into his own investment banking and trading groups.
Diamond confirmed the headcount reduction to the magazine and said that he hoped the operation would complete by the year end, including the elimination of the staff positions.
However, the report did not give any details about how the jobs cuts would come from the old Lehman ranks and Barclays.
"Most of the cuts are expected to come in areas where Lehman and Barclays Capital have a lot of overlap, such as fixed income and in support functions like information technology," the Fortune report stated.
Total employment at Barclays Capital is around 26,000.
In September, the third-largest British bank acquired Lehman's North America operations that include fixed income and equities sales, trading, and research and investment banking. About 10,000 employees worked in those groups at Lehman, which is now part of a unit known as Barclays Capital.
In mid-September, Lehman Brothers, the fourth-largest investment bank in the US, filed for Chapter 11, listing assets of USD 639 billion and debts of USD 613 billion.
Barclays paid USD 250 million for Lehman's banking and trading businesses and also USD 1.5 billion for the bankrupt bank's New York headquarters and two data centres in New Jersey.
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