Latest news with #C.S.Venkatakrishnan
Yahoo
9 hours ago
- Business
- Yahoo
Barclays drafts in McKinsey to find savings in investment banking arm
Barclays has enlisted the services of global consultancy giant McKinsey to identify potential areas for cost-saving within its investment banking division. The FTSE 100 bank is aiming to streamline its investment bank, with consultants scrutinising the front office, finance, risk and technology divisions, as reported by City AM. Consultants will be investigating any duplication of work and the possibility of automating tasks, according to sources who spoke to Bloomberg. READ MORE: Black Sheep Brewery to share in £2m investment from owners READ MORE: Sizewell C nuclear plant supplier reports rise in first-half profits It's already been reported that Barclays is considering cutting up to 200 jobs in this division as it seeks to enhance returns in the business. The investment bank division is the company's largest and saw a 16 per cent increase in revenue in the first quarter of the year, reaching over £3.9bn. This was driven by increased transactional activity in global markets following numerous share sell-offs ahead of President Donald Trump's extensive tariffs on trading partners. Barclays recorded a pre-tax profit of £2.7bn for the quarter, surpassing the £2.5bn predicted by analysts. McKinsey has been collaborating with Barclays on this project for six months and will pinpoint target areas before proceeding to execution. However, the consultancy firm emphasised that these cost-cutting measures do not indicate any reduction in market activity. Chief executive C. S Venkatakrishnan, also known as Venkat, unveiled a new strategy in February 2024 to save nearly £2bn across the bank by 2026. Barclays has announced: "In line with the strategy we announced in February of 2024, we are focused on simplifying our processes to better serve our clients." This comes after competitor HSBC commenced job cuts within its investment bank division, aligning with CEO Georges Elhedery's restructuring plans for the bank. The division is poised to shed various segments of its operations in the UK, US, and Europe, as the company shifts its focus towards a new growth strategy centred on Asia.
Bloomberg
5 days ago
- Business
- Bloomberg
Bloomberg Wealth: Barclays CEO C.S. Venkatakrishnan
Barclays CEO C.S. Venkatakrishnan says the US dollar will remain the world's only reserve currency, despite the economic upheaval caused by the Trump administration's tariff policies. In this episode of Bloomberg Wealth, Venkat shares his journey; from studying at MIT and transitioning from academia to finance, to his long tenure at JPMorgan and eventual rise to Barclays CEO. He also discusses the challenges facing the UK economy and his views on how technology and digitization are transforming the banking industry. This interview was recorded April 22 at the Sell-Side Leaders Forum in New York. (Source: Bloomberg)
Globe and Mail
10-06-2025
- Business
- Globe and Mail
Barclays Plans to Trim IB Workforce by More Than 200 to Reduce Costs
Barclays PLC BCS intends to reduce 3% of its workforce in the investment banking (IB) division in the upcoming days. This is part of CEO C.S. Venkatakrishnan's plan to boost the division's profitability. This was reported by Bloomberg, citing people familiar with the matter. Details of Barclays' Job Cut Plan More than 200 employees in IB, global markets and research will likely be affected. These would also include managing directors, among the most senior roles. These job cuts aim to expand the bank's capability to invest in priority areas, one of the people familiar with the matter stated. Barclays has been focused on gaining market share in European rates, equity derivatives and securitized product trading. During its investor update last year, the company stated that these efforts are anticipated to boost revenues by £500 million by 2026. In IB, the company is aiming to grow its revenues from equity capital markets and mergers and acquisitions, with a specific focus on the health care, industrial, technology, and energy transition sectors. While it is prioritizing growth in other areas, Barclays remains committed to its transatlantic IB model, despite ongoing investor pressure over the years. A Barclays spokesperson stated, 'Like other banks, we regularly assess our talent pool as part of our routine operations to ensure ongoing investment in key focus areas.' Rationale Behind Barclays' Move This move aligns with Barclays' ongoing efforts to improve efficiency through streamlining business operations and focusing on core businesses. In April 2025, it announced a collaboration with Brookfield Asset Management Ltd. to transform its payment acceptance business. Further, in February 2025, it divested its Germany-based consumer finance business. In November 2024, the company acquired Tesco's retail banking business and changed its operating divisions effective in the first quarter of 2024. Over the past six months, Barclays shares have gained 36.3% compared with the industry 's growth of 23.1%. Currently, BCS carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Streamlining Efforts by Other Global Banks Last week, a source familiar with the matter said that Citigroup C will cut about 3,500 jobs at two of its technology centers in China by the start of the fourth quarter of 2025. The reduction will take place at the China Citi Solution Centres in Shanghai and Dalian. Most of the jobs that are being cut are full-time. Citigroup mentioned that some of the roles would be moved to its technology centers elsewhere without specifying the number of jobs or locations. The move is part of the bank's strategy to simplify and reduce its global technology operations to improve data management. Similarly, after shutting its retail banking business in the United States in 2021, HSBC Holdings PLC HSBC is now set to close its business banking division in the country. This announcement comes amid the company's ongoing business simplification efforts and accelerated shift toward the Asia and Middle East regions. This was first reported by Reuters. This move will likely affect nearly 4,500 HSBC clients. The bank will aid the impacted clients in transitioning to a suitable alternative provider and will continue to serve some clients in the Mid-Market and Global Network Banking Business. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Click to get this free report Citigroup Inc. (C): Free Stock Analysis Report Barclays PLC (BCS): Free Stock Analysis Report HSBC Holdings plc (HSBC): Free Stock Analysis Report
Yahoo
10-06-2025
- Business
- Yahoo
Barclays Just Cut 200 Bankers--Here's Why Investors Are Cheering
Barclays (NYSE:BCS) is shaking up its investment bankagain. Over 200 roles are on the chopping block, mostly at the managing director level, as the firm sharpens its focus on higher-return business lines. While the headlines say cuts, the subtext is reallocation: Barclays is redirecting capital toward areas where it believes it can punch harderthink M&A, equity capital markets, and sectors like tech, health care, and energy transition. This isn't a retreat from its full-service model. Insiders suggest it's about shedding lower-yield headcount to go heavier in places with more upside. Warning! GuruFocus has detected 6 Warning Sign with BCS. The move fits squarely into CEO C.S. Venkatakrishnan's longer-term playbook. Last year, he laid out a plan to strip 2 billion in costs by 2026 and hand back 10 billion to shareholders. The investment bankstill Barclays' biggest revenue engine at 11.8 billion in 2024is being told to do more with the same capital base. That means no fresh risk-weighted assets from the parent, despite higher regulatory buffers. Instead, Barclays is betting on talent upgrades: recently tapping ex-Centerview dealmaker Andrew Woeber to lead M&A and poaching RBC's John Kolz to co-run equity capital markets. And so far? The early signals look promising. The firm has started inching back into bigger league tables, landing mandates on high-profile deals like Alphabet's (NASDAQ:GOOG) $32 billion acquisition of Wiz and Sunoco's $9.1 billion buyout of Parkland. In markets, Q1 revenues popped 16%stock trading notched its best quarter in nearly three years. Barclays shares have climbed 24% year-to-date, handily beating the FTSE 100's 8% gain. Investors could be warming up to Venkat's bet: cut costs, reload talent, and go leaner but meaner into the next earnings cycle. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
09-06-2025
- Business
- Yahoo
Barclays Cuts More Than 200 Investment Bank Jobs to Reduce Costs
(Bloomberg) -- Barclays Plc is preparing to cut more than 200 jobs in its investment bank in the coming days as part of Chief Executive Officer C.S. Venkatakrishnan's plan to boost the profitability of the division. Next Stop: Rancho Cucamonga! Where Public Transit Systems Are Bouncing Back Around the World Trump Said He Fired the National Portrait Gallery Director. She's Still There. US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn Senator Calls for Closing Troubled ICE Detention Facility in New Mexico Staffers in investment banking, global markets and research will likely be affected, according to people familiar with the matter, who asked not to be named discussing personnel. Managing directors will be the most senior roles affected, they added. The reduction represents about 3% of the investment bank's headcount. The cuts are meant to give the bank more capacity to invest in priority areas, one of the people said. In markets, the bank has been focused on boosting its market share in European rates, equity derivatives and securitized product trading. In investment banking, the firm has been looking bolster the revenue it generates from equity capital markets and mergers and acquisitions, in particular across the health care, industrial, tech and energy transition industry groups. The move is not a sign that the bank is retrenching away from any products or asset classes, the person added. Although it's prioritizing growth elsewhere, Barclays has committed to its costly transatlantic investment banking model in the face of pressure from investors over the years. 'Like other banks, we regularly review our talent pool as part of our ongoing business operations to ensure continued investment in priority areas,' a Barclays spokesperson said in a statement. The lender made similar reductions just over a year ago. Cost Cuts Venkatakrishnan has been under pressure to boost returns across the investment bank, which consumes large amounts of capital compared with other, higher-returning parts of the business. He has said the division won't be allocated any additional risk-weighted assets from the parent company in the coming years, even as it navigates higher capital requirements from global regulators. The CEO set out a new strategy last year that anticipated about £2 billion ($2.7 billion) of efficiency savings across the bank by 2026, helping to boost earnings and return £10 billion to investors. Barclays' investment bank is by far its largest division, generating £11.8 billion in revenue in 2024, up 7% from a year earlier. The bank is known as a powerhouse in fixed-income markets — though it's been investing heavily in its prime and equity divisions in recent years to catch up to rivals. Many Changes As part of the investor update last year, Barclays said its work to gain share in European rates, equity derivatives and securitized products trading would help it boost revenue by £500 million by 2026. Meanwhile, the push to get back to the 4% market share it last had in advisory and underwriting in 2019 was supposed to yield £700 million in income growth within investment banking. To pull off those goals, the bank has been appointing key leaders and has made several high-profile hires. For instance, it added former Centerview Partners LLC partner Andrew Woeber as its global head of M&A in April and Royal Bank of Canada's John Kolz joined in March to co-run equity capital markets globally. The bank has seen its market share in investment banking inching upward after it had roles on deals including Alphabet Inc.'s $32 billion purchase of Wiz Inc. and Sunoco LP's acquisition of Parkland Corp. for about $9.1 billion including debt. Within markets, revenue for the first three months of the year jumped 16% as the firm's stock traders posted their best quarterly haul in almost three years. Investors seem to be happy with the bank's progress so far, with shares up about 24% this year. That's better than the 8% advance of the FTSE 100 index. The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again What America's Pizza Economy Is Telling Us About the Real One New Grads Join Worst Entry-Level Job Market in Years America Cast Itself as the World's Moral Leader. Not Anymore ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
