Barclays is cutting around 5,000 jobs, about 5% of its 93,000 staff worldwide, as part of a cost-reduction plan that its bosses partly attribute to advances in artificial intelligence. According to chief financial officer Anna Cross, 1,000 exits have already taken place since the start of the year, and another 4,000 are expected by the end of the fourth quarter.
The plan aims to save more than £1.1bn (about $1.4bn) in 2027. Cross said around 60% of the actions concern support functions, including fewer developers, "as AI makes our people more productive."
Asked how many of the cuts were directly linked to AI, chief executive CS Venkatakrishnan said the bulk of the efficiency gains came from deep technology investment and process simplification. AI, he said, "has an important role to play and may have a more important role to play in the future," calling it the "icing on the cake" of a technology infrastructure the bank is modernising.
The news follows months after Standard Chartered, another UK-headquartered bank, announced plans to cut more than 7,000 jobs over four years, about 15% of its back-office roles by 2030.
On the same day Barclays reported pre-tax profits of £2.3bn (about $2.9bn) for the July-September quarter, up 12% from £2.1bn (about $2.7bn) a year earlier. Venkatakrishnan announced a £500m (about $650m) share buyback, bringing the total returned to shareholders since January to £2.8bn (about $3.6bn). The Financial Times reported that fixed income trading profits fell 19% year on year.
The political debate is focused elsewhere. Chancellor John Healey presents the budget on 28 October as Andy Burnham's government seeks revenue to fund cost-of-living support. Barclays' UK retail net interest income rose 6% to £2bn (about $2.6bn), a figure that has become a flashpoint for campaigners pushing for a bank tax. The Trades Union Congress, led by Paul Nowak, argues the big lenders should contribute more while households struggle with bills, noting that the UK's big four banks have made £200bn (about $260bn) in profit since 2021.
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