Barclays trims 5,000 roles, says AI will boost efficiency

UPDATE - follow-up to Barclays cutting 5,000 jobs as it increases reliance on AI: Barclays announced it will cut around 5,000 staff, about 5% of its global workforce. One thousand posts have already been closed and a further four thousand are slated to go by year‑end. The reductions target the UK retail bank and back‑office functions, with many cuts expected in India where part of the support work is based. The bank calls AI the "icing on the cake" of its modernisation plan, noting that not all cuts are directly due to AI.

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Russ Mould, investment analyst at AJ Bell, called the issue a "hot button topic" and warned banks will weigh security and customer service before rolling out AI at scale. He added that any company must keep its cost base in check and that upcoming bank results will be closely watched. Sharon Graham, general secretary of the Unite union, said Barclays is "using AI as an excuse to discard its loyal and long‑suffering workforce" and criticised the move as a short‑term, knee‑jerk approach.

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Barclays reported a £2.3 bn profit for the three months to September, up from a year earlier but slightly below forecast. CEO CS Venkatakrishnan said the cuts stem from major technology investment and that AI will be deployed at scale after infrastructure is built. About 60% of the job cuts will fall in support functions, including developers. The bank expects the efficiency drive to generate roughly £1.1 bn of savings in 2027.

Context

AI adoption is prompting several banks, including HSBC, Standard Chartered and Danske Bank, to announce similar job reductions, highlighting a broader shift toward automation in the industry.