Barclays and Natwest layoffs signal start of banking’s AI job squeeze
Barclays, Natwest, Lloyds and HSBC toasted to a £14n profit haul in the third-quarter but sweeping job cuts stole the show. Samuel Norman takes a look at what the last three months signal for the sector’s future. As bank leaders stepped up to the podium for third-quarter earnings, the agenda had already been set for [...]
Three major UK banks - Barclays, Natwest, Lloyds - announced significant job cuts as part of ambitious cost-saving plans in the third quarter, signaling a broader trend in the banking sector as artificial intelligence (AI) begins reshaping the industry. Barclays confirmed it would lay off around 5,000 employees over the course of the year, having already dismissed 1,000 in the first half of the year.
Natwest reported a 1,000 employee reduction, while Lloyds introduced a £2bn saving target for 2030. The cuts come amid a shift in attitudes towards AI, which bank leaders previously downplayed, but now view as an essential efficiency tool. Banks are also looking to offset declining net interest income since central banks began lowering interest rates two years ago.
Analysts warn that while AI investments are promising, the real challenge lies in translating cost savings into sustained profitability without compromising growth.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
