Barclays cutting 5,000 jobs as it increases reliance on AI

Barclays has announced plans to cut around 5,000 jobs this year as it increases its reliance on artificial intelligence (AI) for business processes. The bank disclosed that 1,000 positions have already been eliminated and expects to complete the remaining 4,000 job reductions by the end of 2026. This equates to 5% of the company's global workforce, primarily targeting operational and functional roles.

Barclays attributes the layoffs to investments in technology, with AI streamlining certain tasks and enhancing efficiency. The cost-cutting measures are part of a three-year program focusing on the UK retail banking arm, though the investment banking division is also impacted. In its most recent reported quarter, Barclays reported a profit of £2.3 billion, surpassing the previous year's performance but falling short of forecasts.

Industry experts have been closely monitoring companies' results to gauge the impact of new technology, particularly AI, on their operations and workforce. Barclays' chief executive, CS Venkatakrishnan, emphasized that the job cuts are a direct consequence of the investments made in technology over several years, and the bank continues to make such investments.