Barclays announces 3,700 job cuts; profits plunge to £246m

Barclays has said it will cut 3,700 jobs this year following a strategic review as profits plunge due to mis-selling claims.

That includes 1,800 jobs at its investment bank and 1,900 in European retail and business banking, according to the BBC.

It comes as the bank reported a plunge in pre-tax profit to £246m in 2012, down from £5.9bn a year ago.

That was after the bank set aside money for compensating customers mis-sold products and a loss on the value of its own debt.

On an adjusted basis, profit rose 26% to £7.05bn, in line with analysts' expectations.

Barclays has been rocked recently by the Libor and mis-selling scandals and new chief executive Antony Jenkins, who replaced Bob Diamond in August, has pledged to transform the banking group.

The bank also confirmed it was closing its Structured Capital Markets business, which helps clients avoid tax.

It said the job cuts would result in a restructuring charge of close to £500m in the first quarter of 2013.

Barclays currently employs 140,000 staff.