Barclays plans to axe 19,000 jobs

|About: Barclays PLC (BCS)|By:, SA News Editor

Barclays (BCS) intends to slash 19,000 jobs over the next three years, including 7,000 at its investment bank, where operating profit halved in Q1.

Barclays will cut 14,000 positions this year, above an expected 12,000-14,000.

The U.K. company also plans to create a "bad bank" that will incorporate £115B ($195B) worth of risk-weighted assets from the investment bank, as well as the firm's retail banking operations in Italy, France, Spain and Portugal. The aim is for the investment bank to account for no more than 30% of the company's risk-weighted assets vs 50% now.

Barclays will give greater focus to its retail activities in Britain, its Barclaycard credit card division, and its African business.

The company will book £800M in costs as part of the overhaul, adding to £2.7B that was announced in February 2013.

However, within two years, Barclays aims to increase its dividend payout to up to 50% of adjusted earnings vs current guidance of 40%.

Shares are +3.4% in London. (PR)