Barclays Capital to cut hundreds of jobs

Company has seen a dip in its earnings with 14 per cent drop in topline profits

Barclays Capital, the investment banking unit of banking group Barclays will be cutting hundreds of jobs over the next two months, owing to a decline in activity in the sector and investment banking revenue.

Barclays Capital, which contributes to two thirds of the company's profits has seen a dip in its earnings with the division reporting a 14 per cent drop in topline profits for the third quarter from the previous quarter.

"We have begun a consultation process to reduce headcount within Barclays Capital," said a spokesperson for the bank, who did not specify the exact number of jobs to be slashed.

He added that Barclays would "continue to hire across those parts of the business that are growing."

Barclays Capital has a staff strength of about 9,500 people in the Europe and US and employs a further 5,000 people in Asia.

In August, the company had eliminated 400 positions across its regional offices, following a market downturn.