Barclays PLC plans to close most of its cash-equities business in the Asia-Pacific region as chief executive officer Jes Staley pushes to reduce costs, according to people familiar with the matter.
The near-exit from cash equities is part of plans to eliminate about 50 percent of jobs at the wider equities unit in the region, said the people, who asked not to be named because no announcement has been made. They declined to specify how many employees are affected. A Barclays spokesman declined to comment.
Barclays employed 18,200 people in the Asia-Pacific region at the end of 2014, according to its latest annual report.
Staley’s move comes as a slowing Chinese economy triggers stock declines throughout Asia. People familiar with the matter last month said that Barclays planned to cut 20 percent of staff at its investment bank, with most losses to come in Asia and the global cash equities business. Barclays pushed into cash equities in the region in 2009, after the global financial crisis weakened many competitors. In May last year, Vikesh Kotecha, the firm’s Asia-Pacific head of equities trading, said Barclays was on track to make money from its cash-equity broking operations after cutting costs.
Barclays’s investment bank has been hurt by rising costs tied to past misconduct and tougher capital requirements. Chairman John McFarlane has pledged to refocus the business on the UK and US and has said the bank is reviewing the contributions of operations in Asia and the Middle East, because “we don’t like places that don’t make money.”
Reuters reported this week that Barclays is poised to close its investment banking businesses in Taiwan and South Korea. Barclays also plans to shutter its India equities unit, Reuters reported, citing unidentified people.
Tighter regulations and higher capital requirements are forcing a number of large banks, including Standard Chartered PLC and Nomura Holdings Inc, to cut jobs in investment banking and focus on more profitable areas.
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