Barclays to slash 5,000 jobs in AI efficiency push
Barclays plans to cut 5,000 jobs, representing 5% of its workforce, as part of an AI-driven efficiency initiative. The bank reported a 12% increase in pre-tax profit despite missing income expectations.
Why it matters
This highlights the growing trend of major financial institutions using AI to streamline operations and reduce headcount in support functions.
British lender Barclays has revealed plans to cut 5,000 jobs — about 5% of its total workforce — as part of an artificial intelligence-linked efficiency push.
In its third-quarter earnings statement Thursday, Barclays said it was "structurally reducing the cost base to generate capacity for investment."
About 60% of the cuts are expected to be in support functions, including developers, according to the earnings presentation, which also noted an outcome was "organisational simplification and technology change efficiency driven by AI."
Shares in the bank were almost 1% lower by 8:50 a.m. in London (3:50 a.m. E.T.), less than an hour into the trading day.
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