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Barclay’s announcement of a radical overhaul of its investment banking division alongside substantial job cuts has yet again highlighted CEO Antony Jenkins’ determination to move the bank into a new era. Building on previous announcements about culture and ethos, the move will see the investment division taking up no more than 30% of the group’s total by 2016.
Prompted partly by the changing regulatory climate and the new impetus towards clear regulation the changes, say Antony Jenkins, will move the bank towards being a “focused international bank, operating only in areas where we have capability, scale and competitive advantage,” adding “my goal is unchanged: to create a Barclays that does business in the right way, with the right values, and delivers the returns that our shareholders deserve.”
Initial responses by the stock market have been positive with shares jumping 3.5% at the start of trading. But slashing job counts in one area is not automatically going to lead to the radical overhaul of culture which Antony Jenkins is aiming for. Turning around a toxic ‘anything goes’ culture into one which operates through values and long term gain takes leadership and determination allied to a strong drive to re-engage employees in the new beliefs and behaviours of the organisation. We’ll be watching this story unfold with interest.