Barclays Capital, the investment banking arm of Barclays, is to lay off 200 employees in UK following an internal review of its staffing levels following an industry slowdown.

The cut is expected to hit investment bankers and support staff in the UK.

Barclays is also planning to slash between 500 and 600 jobs globally in the division, according to media reports.

Bob Diamond, now the bank’s CEO, headed Barclays Capital for 14 years and built it up into a major component of Barclays’ business.

But the unit’s revenue declined 24% in the third quarter to £2.8bn, reflecting a tougher environment for bonds, foreign exchange and commodities trading.

Diamond appeared before parliament this week in Britain, where Barclays is headquartered and 200 workers are to be laid off, to discuss bankers’ remuneration and the continuing fallout from the financial crisis.