LONDON (dpa-AFX) - Barclays Capital, the investment banking division of British lender Barclays plc (BCS, BARC.L), plans to lay off 275 employees at its three offices in New York.
The layoffs, which were disclosed by Barclays Capital in a notice to the New York State Department of Labor, will take place during a 14-day period commencing on May 15. The company cited 'economic' factors as the reason for the layoffs.
The lay offs will occur at the company's three offices on 200 Park Avenue, 745 Seventh Avenue and 130 Avenue of the Americas in New York.
The New York State Worker Adjustment and Retraining Notification or WARN Act requires businesses to give early warning of closing and layoffs. The WARN act applies to private businesses with 50 or more full time workers in New York State. The covered businesses must provide all employees with notice 90 days prior to a mass layoff.
According to media reports, Barclays Chief Executive Antony Jenkins is expected to announce the elimination of about 2,000 jobs at the company's investment bank, when he unveils a strategic plan on Tuesday, February 12.
In late October 2012, Barclays reported a loss for the third quarter, reflecting a charge on its own credit and a provision for Payment Protection Insurance or PPI redress. The company's loss before tax was 47 million pounds for the quarter, compared to profit of 2.42 billion pounds in the previous-year period.
Last Sunday, Barclays said that Group Finance Director Chris Lucas and Group General Counsel Mark Harding will be retiring from the company. Lucas and Harding are leaving the company amid the Libor rate fixing scandal as well as the capital injection by Qatar in 2008. Lucas is one of the four current and former employees being investigated by British regulators on the Qatar issue.
The rate fixing scandal saw former CEO Bob Diamond, Chairman Marcus Agius and COO Jerry del Missier leaving the company last year. In late June 2012, Barclays said it agreed to pay 290 million pounds to U.S. and UK regulators to settle allegations that its employees tried to manipulate the Libor.
BCS closed Wednesday's trading at $18.53, up $0.01 or 0.05 percent on a volume of 2.52 million shares.
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