At Barclays, the investment bank—just a slightly smaller one—is here to stay.
Following months of mounting pressure from shareholders, Barclays CEO Antony Jenkins announced a broad restructuring plan on Tuesday that would cut 3,700 jobs across the board, more than half of which will come from the investment bank, Barclays Capital.
(Read More: Barclays to Axe at Least 3,700 Jobs in 2013
The move to downsize signals a 180-degree turn from the strategy of Jenkins' predecessor, Bob Diamond, ousted in July 2012 amid a rate-rigging scandal that rocked the bank's reputation. Diamond spent nearly 10 years, including his time as chief executive, on a quest to build the investment bank into a global powerhouse—a strategy that culminated in the 2008 coup of buying the United States assets of Lehman Brothers.
Jenkins is now in retreat.
"Over time, the investment bank will grow," Jenkins told analysts after presenting the strategic review. "But it will grow less fast … than other parts of the group."