Barclays layed out their strategy today and yes, obviously also IBD is affected by layoffs. Let's be honest, European banks suck right now for investment banking. Better choose a top boutique such as BX, LAZ, PWP, GHL, EVR, etc. if you have the chance. Better pay, comparable exits, often better lifestyle, advisory focus, top talent (ex-top-BB at the top), elite advisory shops are the place to be in M&A in the next years imho. But we will see..
Btw, first year analysts are rarely part of the layoffs. The bigger problem is the loss of high profile senior management in the last few weeks at Barclays as well as the loss of senior management as part of the layoffs, which will probably harm dealflow.