Barclays PLC (BCS - Free Report) announced that it had expanded its Wealth and Investment Management division in the U.S. by adding 16 new investment representatives. The latest additions were made in 7 of its offices across the nation.
The experienced recruited bankers manage around $15 billion in client assets, raking in $35 million of revenue in 2012. Notably, 6 of the new hires will join the New York office, whereas 3 will join the Houston office. The Miami and Beverly Hills offices will have 2 new bankers each, whereas the branches at Boston, Los Angeles and Chicago will each have 1 banker.
Most of these bankers have previously worked with banking biggies like Deutsche Bank AG (DB - Free Report) , Credit Suisse Group (CS - Free Report) and The Goldman Sachs Group, Inc. (GS - Free Report) . Therefore, their experience of working with such huge banks is expected to improvise Barclays’ operations. Currently, the bank has 14 offices across the U.S.
However, in another development, Barclays Investment Bank – a division of Barclays – announced to eliminate nearly 275 jobs in New York City. These layoffs are a part of the company’s strategic overhaul aimed at reviving its profitability.
Over the past one year, Barclays has been under tremendous pressure owing to unsettling macroeconomic factors. In addition, the company is embroiled in various controversies highlighting its scandalous activities.
Barclays’ financials are battered by innumerable problems, prompting its management to undertake revamping efforts. We believe with the hiring of new employees in lucrative division and thereby laying off in another division with declining revenues, Barclays aim at stabilizing its operations.
We look forward to the company’s fourth-quarter 2012 earnings expected to be released on Feb 12, which is expected to announce some restructuring initiatives.
The Zacks Earnings ESP (Read: Zacks Earnings ESP: A Better Method) for Barclays is 0.00%. This, coupled with its Zacks Rank #4 (Sell), indicates that the company may miss the Zacks Consensus Estimate for the fourth quarter.