Barclays to cut 5,000 jobs as it turns to AI to improve efficiency

Barclays shares edged lower in London after the bank said on Thursday it would cut around 5,000 jobs, including around 1,000 already cut in the first half of the year.The announcement came alongside an earnings update that showed Barclays’ net profit grew 13% in the third quarter, helped by surging income in its equities division.Barclays said in an earnings presentation that it was implementing “organisational simplification and technology change efficiency driven by AI”.About 60% of the job cuts affect support functions, including developers, as AI makes staff more productive, according to the bank.Will Howlett, a financial analyst at Quilter Cheviot, said the announcement illustrates "just how significantly AI and automation could reshape the banking industry over the next few years"."Banks have spent heavily on technology for years, but we are increasingly reaching the point where that investment translates into fewer people being required to run the business," he said, adding…