Barclays to cut 5,000 jobs as it turns to AI to improve efficiency
British bank Barclays said on Thursday it would cut around 5,000 jobs, or roughly 5% of its global workforce, by the end of 2026 as it turns to AI and other technology to streamline operations and improve efficiency.
Barclays has announced plans to cut around 5,000 jobs as the bank seeks to increase efficiency through AI and organizational simplification. The job cuts, which will primarily affect support functions including developers, are expected to generate over £1.1 billion in savings. Barclays' net profit grew 13% in the third quarter, driven by surging income in its equities division, with a 47% year-on-year increase in income from equities.
However, the investment bank division underperformed, particularly in fixed income trading. The bank expects its efficiency measures to help improve profitability. Barclays CEO C. S. Venkatakrishnan expressed satisfaction with the bank's momentum, stating that the investment bank division delivered strong equities performance. The bank also announced a £500 million share buyback.
However, Barclays may face some headwinds, including a likely increase in sector tax in the UK budget and a probe into potential misrepresentation of risks in its private credit portfolio. The Bank of England is examining whether Barclays understated risks linked to financing for private credit funds.
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