The bank revealed on Thursday it will cut 14,000 jobs this year, more than the 10,000 – 12,000 it had previously stated.
By the end of 2016, some 7,000 roles will be lost from its investment banking division, which has been hit by the slowdown in demand for fixed income.
The cuts will be part of the new strategy as the business is separated into a ‘good’ and ‘bad’ bank, in a move similar to that undertaken at rival Royal Bank of Scotland.
The bank’s share price has dropped over the last couple of days, down nearly 6% since last Friday at 242p, after its quarterly results on Tuesday showed a 50% drop in profits.
The ‘bad’ bank part of the business is set to help in the transition to a better management structure and is expected to house around £100bn of underperforming assets, according to Sky News.
This non-core division will be run by Eric Bommensath, the joint chief executive of the investment bank, while Tom King will remain as its sole head.
However, the group is not expected to completely withdraw from investment banking as it revamps the business.
Last month, chief executive Antony Jenkins sent a memo to staff in an attempt to stave off such concerns, Sky News reports.
Today’s announcement states the core investment bank will represent no more than 30% of the group’s total risk weighted assets by 2016, down from 50% today.
