Barclays bank to cut about 5,000 jobs amid AI drive
The British bank also reported a 13% rise in third-quarter net profit, driven by surging income from its equities division.
Barclays, a British bank, announced plans on Thursday to cut around 5,000 jobs by the end of 2026 as part of an AI efficiency drive. The reduction, which represents approximately 5% of the global workforce, is being driven by organizational simplification and technological advancements enabled by artificial intelligence.
The bank's earnings update revealed a 13% growth in net profit for the third quarter, driven by increased income across its equities division. About 60% of the job losses will be in support functions, including a reduction in the number of developers due to AI's productivity enhancements. Barclays' profit after tax rose to £1.65 billion (US$2.2 billion) in the quarter, up from £1.46 billion in the same period last year.
Barclays chief executive C. S. Venkatakrishnan highlighted ongoing momentum in both operational and financial performance. He noted that the investment bank division delivered strong equities performance, with revenue from equities jumping 47% year-on-year, and total group income for the quarter increasing by 3% to £7.37 billion.
The AI-driven job cuts come amid mixed results for Barclays, as the company failed to meet expectations with its third-quarter performance. Despite a healthy share buyback announcement, investors expressed disappointment. Barclays shareholders also face two concerns: a projected increase in sector taxes in the upcoming UK budget and a potential investigation into the potential misrepresentation of risks within the private credit portfolio.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
