Barclays to cut 5,000 jobs as bank’s bosses hail AI productivity advances
Equating to the loss of 5% of its 93,000 global staff, job cuts come as bank announces jump in quarterly profits Business live – latest updates Barclays is cutting 5,000 jobs as part of wider cost-saving plans that its bosses say are being driven by advances in AI. The job cuts will mean losing about 5% of the bank’s 93,000 global staff, with executives confirming they had already cut 1,000…
Barclays, the multinational banking corporation, has announced plans to reduce its workforce by 5,000 employees in a bid to cut costs and boost productivity. The job cuts, equivalent to roughly 5% of the bank's global workforce of 93,000, are part of a wider cost-saving strategy that its executives claim is being driven by advances in artificial intelligence (AI). Since the beginning of the year, Barclays has already laid off 1,000 workers.
Chief Financial Officer Anna Cross revealed that the company aims to save over £1.1 billion by 2027 through these measures. According to Cross, about 60% of the job cuts will involve support functions, with a reduction in the number of developers as AI makes employees more productive. The bank's CEO, CS Venkatakrishnan, stated that deep investments in technology and process simplification have been the main drivers of efficiency gains so far. Venkatakrishnan highlighted AI as the "icing on the cake" to modernizing the bank's technology.
The Unite union, representing Barclays workers, expressed disappointment with the company's decision. General Secretary Sharon Graham criticized Barclays for using AI as an excuse to dismiss loyal and long-suffering employees. She argued that employers should focus on upgrading employees' skills to remain employed amid evolving workplace technologies instead of resorting to short-term, kneejerk measures.
Barclays also announced a dividend payout of £500 million to investors, bringing the total amount given to shareholders since January to £2.8 billion. The strong financial performance, with £2.3 billion in pre-tax profits for the July to September quarter, has been cited as justification for the expected increase in bank taxes in the upcoming budget.
Chancellor of the Exchequer Andy Burnham's government seeks ways to raise revenue to fund cost-of-living support programs. Barclays' CEO, Venkatakrishnan, assured that the bank can absorb any potential increase in levies and emphasized the company's commitment to supporting Chancellor's goals for growth and market signaling.
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