Barclays plans to eliminate around 5,000 jobs, or 5% of its global workforce, by the end of this year as the British lender streamlines its operations and increases its investment in technology, including artificial intelligence (AI).The bank has already closed 1,000 positions and expects to cut another 4,000. Around 60% of the reductions are expected to affect support functions, including developers, while operational and functional roles will account for most of the job losses.The move comes as Barclays approaches the end of a three-year cost-cutting programme focused primarily on its UK retail banking business. Its investment banking division is also affected.In its third-quarter earnings presentation on Thursday, the bank said it was “structurally reducing the cost base to generate capacity for investment.” It described the expected outcome as “organisational simplification and technology change efficiency driven by AI.”Barclays said AI was the “icing on the cake” of its wider modernisation strategy. Group chief executive CS Venkatakrishnan said the job cuts reflected significant investment in technology to simplify and improve the business.Barclays reported pre-tax profit of £2.3 billion ($3.1 billion) for the three months to September, up 12% from the same period a year earlier. The figure matched forecasts compiled by LSEG, although the results were also described as slightly below forecast.Group income stood at £7.4 billion, below analysts’ estimate of £7.61 billion, while net interest income was broadly unchanged at £3.91 billion.The bank’s CET1 capital ratio, a measure of financial solvency, edged down to 14.2% from 14.3% at the end of the second quarter. Return on tangible equity fell to 11.7% from 16.1%.Barclays shares were almost 1% lower less than an hour into the trading session. Economists are examining company results for evidence that spending on new technology, particularly AI, is improving day-to-day operations, boosting efficiency and reducing staffing requirements.Barclays’ latest workforce reduction comes amid this wider scrutiny of how companies are using AI and whether the technology is delivering operational gains.
