Barclays becomes the latest company to trim its workforce for AI efficiency
The cost of building out the infrastructure needed to satisfy booming demand for artificial intelligence is changing the way major companies allocate resources. That can mean an end to some jobs once done by humans. Yet in many cases it means repurposing money once spent on workers so that more capital can be devoted to boosting AI capabilities. Just how much money is being spent on AI is a hot…
Barclays, a U.K. bank and financial services company, announced plans to cut 5,000 jobs, or about 5% of its workforce, citing the need for "organizational simplification and technology change efficiency driven by AI." Approximately 60% of the cuts will come from support functions, including developers. Other companies, such as Norway's DNB and Germany's Commerzbank, have also announced job cuts in alignment with their expansion of AI capabilities.
Kroger, the largest standalone U.S. supermarket chain, is laying off 3,000 corporate employees over the next three years to adapt to AI-driven processes and improve customer experience. Meta, the parent company of Facebook and Instagram, is set to lay off about 8,000 workers, or 10% of its workforce, to redirect resources towards AI infrastructure and highly paid AI expert hires.
Microsoft is offering voluntary buyouts to thousands of U.S. employees, with plans to eliminate about 7% of its U.S. workforce due to significant investments in AI-driven data centers and cloud computing services. Standard Chartered plans to cut over 15% of its back office employees by 2030 to streamline processes and improve decision-making through automation, advanced analytics, and AI.
Coinbase, a cryptocurrency trading platform, is reducing its workforce by approximately 14% due to AI advancements that streamline workflows and automate many processes. Pinterest is also restructuring its workforce, planning to lay off 15% of its employees to reallocate resources to AI-focused roles and prioritize AI-powered products.
Snap, the owner of Snapchat, is eliminating about 16% of its global workforce, or roughly 1,000 jobs, with the aim of streamlining operations and reallocating resources towards AI initiatives. Block, the parent company of payment platforms Square and Cash App, is laying off more than 4,000 employees, reconfiguring its structure to capitalize on AI-influenced advancements in building and running a company.
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