Barclays (LON:BARC) Plc is set to lay off approximately 50 senior dealmakers as part of its annual performance-based cuts, following a sustained downturn in dealmaking. The move mirrors strategies employed by Goldman Sachs Group Inc (NYSE:GS). and Citigroup Inc (NYSE:C).
The bank's trading operations are affected by these cuts, which come in response to a 15% decrease in investment banking fees. Barclays aims to eliminate around 300 positions across its corporate and investment banking divisions, representing about 3% of the total workforce.
Barclays has been a prominent player in the Banks industry, and despite the layoffs, it is strengthening its division with the appointment of two new global co-heads and over 30 managing directors and directors. This strategic shift, which comes on Wednesday, reflects the bank's efforts to navigate a challenging economic climate while maintaining its competitive position within the industry.
According to InvestingPro data, Barclays has a market capitalization of $28.42 billion and a low P/E ratio of 4.3, indicating it is trading at a low earnings multiple. This is further supported by InvestingPro Tips which highlight that Barclays is trading at a low Price/Book multiple. This could suggest that the bank's shares are undervalued, a potential opportunity for investors.
Moreover, Barclays has raised its dividend for three consecutive years, a positive sign for income-focused investors. However, it's worth noting that the bank's revenue growth has been slowing down recently, with a revenue growth rate of 0.42% according to InvestingPro data.
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Despite the current challenges, analysts predict that Barclays will be profitable this year, and it has indeed been profitable over the last twelve months. The bank's next earnings date is on the 24th of October, 2023, which will provide a clearer picture of its financial performance in the face of these changes.
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