The CEO of Barclays’ investment bank just sent a memo to employees that outlines the future

Barclays Memo

Business Pundit reported earlier today that Barclay’s is preparing to layoff about 1,000 workers from its investment banking division.

Following that big news Tom King, CEO of the company’s investment bank, sent out a memo to the company’s employees.

In his message King says the company will close its Moscow office, stop stock trading in Asia, and make some big changes to its US markets business.

The memo mentions job cuts, but doesn’t given any specific numbers.

The company has been undergoing a transformation since JPMorgan executive Jes Staley took over as CEO at Barclays.

Here is the memo in its entirety:

Message from Tom: Continuing our evolution as a bulge-bracket investment bank

We are today announcing changes that evolve and refine our business; strengthening our position as a bulge-bracket investment bank.

Since we announced our strategy in May 2014 we have accomplished a lot. Our returns have improved and we are ahead of many of our peers in re-shaping our franchise. But there is more to do before we deliver the potential of our business.

Today’s changes are further progress in implementing our strategy. We regret that some colleagues will leave the organization as a result, and I would like to thank them for their commitment to Barclays and wish them the very best for the future.

By focusing our business on areas where we have sustainable competitive advantage, we are putting ourselves in a position where we can not just survive but thrive in a dynamic, complex operating environment.

Our business in Asia Pacific

  • Asia Pacific is an important part of our global network.
  • We are sharpening our focus on the geographies and products where we have a clear competitive advantage, with a physical presence only in China, Hong Kong, India, Japan and Singapore.
  • We will continue to provide expertise and resources to global and local clients in the region who have cross-border requirements, with a particular focus on connections to the US and EMEA.
  • In Markets, we remain committed to our strong EFS and Equity Finance franchises in Asia Pacific, and to our mature Macro and Credit businesses in the countries where we maintain a physical presence. We will discontinue Asia Pacific local cash equity products, with the exception of electronic execution-only services. We will no longer pursue high-touch Equities sales, trading, or research coverage of Asia product in any region.
  • In Banking, we will maintain a full client offering in Debt Financing, Risk Management and cross-border M&A. We will focus our Equity Capital Markets offering on equity-linked financing, derivatives, and taking our local clients to the international capital markets, particularly the UK and the US.
  • Asia Pacific remains the key global infrastructure hub for Barclays.

Our business in EMEA

  • We are the only bulge-bracket investment bank headquartered in the UK, and that makes us uniquely placed to support UK and EMEA clients in decreasing their reliance on bank balance sheets, by strengthening the capital markets to support economic growth.
  • Our 325-year history and our broad and deep client relationships in our UK home market are a key competitive advantage for us.
  • Our leading EMEA franchise will continue to deliver a full spectrum of investment banking products and services to our clients across the region, with supporting infrastructure and execution capabilities anchored in our UK hub.
  • We will continue to anchor our Banking CEEMENA coverage teams in London and Dubai. We will discontinue sales and research coverage of CEEMENA cash equity products and centralise execution in London.
  • We will cover key Russian corporate and financial institutions through dedicated London-based coverage teams, closing our Moscow office
  • We are evaluating various options for the exit of our Precious Metals business, and in the process will seek to minimise disruption to clients, colleagues and the market.
  • Our proposition in EMEA is otherwise unchanged.

Our business in the Americas

  • As one of our two home market franchises, in the world’s largest single pool of capital, our leading US business is another distinct competitive advantage for Barclays.
  • We will continue to invest and evolve our offering, building on the strength of our client relationships.
  • An immediate step in that evolution will be to focus our securitized products capability in origination-led Asset Backed and Commercial Mortgage Backed Securities. Our Agency pass-through business will be incorporated into our Macro business. As a result, we will no longer offer Residential Loan Trading, GNMA CMBS or CMO products.
  • In Brazil, Markets capabilities will be delivered offshore by our New York and London teams, with a continued Banking focus on Brazilian clients.
  • Our proposition in the Americas is otherwise unchanged.

Continuing our evolution

We are, and will remain, one of the small number of firms globally that provide the critical link between providers and users of capital, and enable them to manage risk and grow. We are proud to be a bulge-bracket investment bank.

Our business combines scale and strong relationships in the world’s two most significant pools of capital – the UK and the US – with a powerful distribution network globally and world-class expertise and execution in risk management.

We have shown discipline in our own use of capital; supporting our clients and growth of the capital markets in a way that will enable a sustainably attractive return for our shareholders.

Your passion for our clients and commitment to our business has enabled us to make great progress on our strategy. We have moved quicker and evolved further than many of our peers and the changes we are announcing today continue that evolution.

Tom