Barclays to cut 5,000 jobs while handing work over to AI — Chief Executive says AI is 'icing on the cake'
Barclays cutting 5,000 jobs as part of a plan to save £1.1 billion, and the majority of the work is going to AI.
Barclays is reducing its workforce by 5%, or 5,000 jobs, by the end of 2026 as part of a major restructuring plan. The cuts, which amount to 5% of the company's global headcount, are being driven by advancements in artificial intelligence (AI) and improved efficiency in processes. So far, 1,000 roles have been eliminated, with an additional 4,000 positions expected to be let go before the year's end.
The majority of these positions are in operational and functional roles within Barclays' UK retail banking division, although investment banking is also set to experience job reductions.
Barclays attributes the need for these cuts to deep investments in technology and the accelerating impact of AI on workflow automation. "We are positioning Barclays for the future, building the workforce and skills needed to deliver our strategy and meet the evolving needs of our customers and clients," stated a Barclays spokesperson.
CEO Vijay Venkatakrishnan emphasized that deep investments in technology and process simplification have been the primary drivers of efficiency gains. AI, he added, plays a significant role in these improvements, potentially assuming an even greater role in the future. The company's chief financial officer, Anna Cross, revealed that the job cuts are intended to save Barclays £1.1 billion by 2027.
The reductions are expected to impact approximately 60% of the group's support functions, including theory developers. Cross noted that AI enhances employee productivity.
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