The Street still loves a good chainsaw; Barclays soars

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

Plans to gut its investment bank (7K job cuts), park £400B of assets in a "bad bank", and cut another 12K positions from the rest of the company light a fire under Barclays (BCS +7.8%). The lender's current workforce is 139.6K strong, and the 19K in cuts announced today stands against a plan of just 12K expected earlier this year.

Barclays' reshaped investment bank will concentrate on the core markets of the U.S. and the U.K., and the top 1K clients who generated more than 75% of revenues last year. The investment bank will now account for 30% or less of risk-weighted assets, down from 50% now.

Talking a different line than JPMorgan's (JPM +0.4%) Jamie Dimon, Barclays boss Antony Jenkins says the evaporation of trading revenue is indeed secular, not cyclical.

Previously: Cyclical or secular? JPMorgan warns again on trading business

Previously: Barclays plans to axe 19,000 jobs