Barclays is going back to basics after posting an annual loss of £394 million ($550 million).
The bank has announced plans to scale back heavily in Africa and slash dividend payments as it continues a broader retrenchment designed to boost capital levels.
The rethink is being executed by former J.P. Morgan banker Jes Staley, who became Barclays CEO three months ago. In a statement, Staley said the strategy would build on Barclay’s strength in London and New York, the “two financial centers of the world.”
The bank will have two divisions in future. One will serve U.K. personal and business customers; the second will be a “transatlantic business” focused on international corporate and investment banking.
Barclays has operated in Africa for more than 100 years, and Staley described the decision to sell down its stake in Barclays Africa Group as “very difficult.” He said the move, to be made over two to three years, will allow the bank to reduce headcount by around 40,000 and become a simpler organization.
Barclays will also exit its banking businesses in Egypt and Zimbabwe, which are operated separately.
The bank’s loss for 2015 was wider than analysts had anticipated. Barclays shares trading in London dropped nearly 10% after the announcement. Investors have pushed the bank’s shares down by 25% this year, and 35% over the past six months.
Barclays ousted former CEO Antony Jenkins in July after three years on the job. He had been pushing through a massive overhaul, which included big job cuts.
His predecessor, Bob Diamond, left the bank after an interest rate-rigging scandal that cost it billions in fines.
