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Barclays has signaled potential job cuts in London to cut costs and recover from the legacy of former CEO Jes Staley.
The bank reported a four percent profit drop in the third quarter, totaling £1.9 billion.
It’s due to a slowdown in its investment banking division and an increase in bad debts.
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This comes after the Financial Conduct Authority's (FCA) recent fine of £1.8 million and a ban on Staley from holding senior City positions.
It follows allegations of concealing his "close personal relationship" with the deceased sex offender Jeffrey Epstein.
Under Staley's leadership, Barclays bolstered its investment banking presence, establishing itself as a significant player on Wall Street.
However, his successor, CS Venkatakrishnan, known as Venkat, is now looking to implement cost-cutting measures.
Further details are expected in February.
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He said: “We see further opportunities to enhance returns for shareholders through cost efficiencies and disciplined capital allocation across the group.”
The challenges Barclays face reflect broader trends in the Square Mile, where a lack of deal-making and new listings is impacting the industry.
As such, the possibility of job cuts in the investment banking sector looms over the entire City.
Corporate and investment banking sector profits fell by 11 percent in the third quarter, attributed to "lower client activity."
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The bank also saw a 26 percent decline in fixed-income trading revenue, which may have ripple effects on London and New York bond trading desks.
The bank allocated £433 million to handle potential debt defaults, an increase from the previous figure of £381 million.
If this trend continues throughout the financial sector, it could be a concerning indicator for the broader banking industry.
Barclays is also grappling with fierce competition on the high street, particularly regarding customer deposits.
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