Barclays Bank To Cut 3,700 Jobs After Profits Plunge

Barclays is to cut 3,700 jobs, it has announced.

The jobs to go are 1,800 investment banking posts and 1,900 in retail and business banking.

Barclays is shedding 3,700 jobs

The bank also announced its pre-tax operating profit was £7.05 billion, up about a quarter from the £5.59bn achieved a year earlier.

However, this figure includes the £1.6bn it had to set aside during the year to cover the cost of compensating customers who were mis-sold payment protection insurance, and the fluctuating value of its issued debt, known as "own credit", which accounts for £4.58bn.

When you take these and other operating expenses, such as corporation tax, into account, profits at the banking giant actually plunged to £246 million.

The bank has been rocked recently by the Libor-fixing and mis-selling scandals.

Speaking on the BBC's Today Programme, new Chief Executive Anthony Jenkins promised to "build a better Barclays for the future."

He said: "Banks have to reposition themselves to become more efficient and better serve customers and clients."

Barclays said its staff bonus pool was down 16% for 2012, with employees receiving £13,300 on average and staff in its investment bank getting an average of £54,100.