Barclays Bank is to shed 7,000 UK workers even as it is increasing the bonuses it pays.
The bank, which employs 140,000 worldwide, raised its total bonus pot by 10% in 2013 to £2.38 billion, while upping those in its 'casino' investment arm by 13%.
The company saw pre-tax profit fall from £7 billion to £5.3 billion in the year, and has decided that regular workers will bear the majority of pain for this.
Only 820 jobs will be lost from senior management.
Barclays said it would try to achieve the cuts through voluntary redundancies, but they come on top of thousands of lay offs last year suggesting this will be hard to do.
Chief executive Antony Jenkins denied that directors were lining their pockets at the expense of regular workers, saying:
"At Barclays, we believe in paying for performance and paying competitively".
The bank is breaking its own rules; 43% of its income is given out as pay, well above its mid-30s target.
This is also above the industry average of 40%, suggesting staff at the bank are collecting salaries their performances cannot justify.
Analysts were highly critical of the decision.
William Wright, investment banking columnist at Financial News, said:
"Barclays can talk until it's blue in the face about it being in the longer-term interest of shareholders, but from the outside, it simply looks wrong."