Barclays Targets 5,000 Jobs as AI Drives Its Efficiency Push
Barclays Targets 5,000 Jobs as AI Drives Its Efficiency Push
Barclays has set out plans to eliminate about 5,000 jobs — roughly 5% of its workforce — in an efficiency programme tied to wider use of artificial intelligence.
The bank disclosed the move alongside its third-quarter results on Thursday, framing the restructuring as a financial necessity rather than a simple headcount reduction. Barclays said it was “structurally reducing the cost base to generate capacity for investment.”
The proposed reductions are expected to fall disproportionately on support functions: about 60% of the cuts are planned in those areas, including developer roles. In its earnings presentation, the lender pointed to “organisational simplification and technology change efficiency driven by AI” as an outcome of the programme.
The timing is striking. Barclays reported third-quarter pre-tax profit of £2.3 billion, up 12% from a year earlier and in line with forecasts, though group income of £7.4 billion missed analysts’ expectations. Its return on tangible equity also declined to 11.7%, from 16.1% in the previous quarter.
Investors initially offered a muted verdict, with Barclays shares down almost 1% early in London trading. The bank’s message is clear: stronger profit does not remove the pressure to cut costs. Instead, it is using AI and organisational overhaul to redirect resources — with thousands of workers set to absorb the consequences.
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