Barclays Puts 5,000 Jobs on the Line in Its AI Efficiency Drive
Barclays Puts 5,000 Jobs on the Line in Its AI Efficiency Drive
Barclays has put roughly 5,000 jobs — about 5% of its workforce — in the crosshairs of an efficiency programme tied to artificial intelligence. The move places the bank’s cost-cutting ambitions alongside a sharper question for staff: which roles will remain necessary as technology takes on more work.
The lender disclosed the plan in its third-quarter earnings statement on Thursday, saying it was “structurally reducing the cost base to generate capacity for investment.” Its presentation identified “organisational simplification and technology change efficiency driven by AI” as a key outcome of the programme.
The burden is expected to fall disproportionately on support functions. About 60% of the planned reductions are slated for those areas, including developers, according to the earnings presentation. That detail makes the announcement more than a broad belt-tightening exercise: it signals a restructuring of the teams that keep the bank’s internal systems and operations running.
The announcement arrived alongside a mixed set of financial signals. Barclays reported a 12% year-on-year increase in third-quarter pre-tax profit to £2.3 billion ($3.1 billion), in line with forecasts. But group income of £7.4 billion missed analysts’ £7.61 billion estimate, while return on tangible equity fell to 11.7% from 16.1% in the previous quarter.
Shares were almost 1% lower early in London trading after the results. For Barclays, AI is being presented as a route to leaner operations and future investment; for thousands of employees, it is now directly linked to an uncertain future.
Write a comment