THE CRUNCH
Barclays is cutting 5,000 jobs, about 5% of its 93,000 global staff, as part of cost-saving plans its bosses say are being driven by advances in AI. Chief financial officer Anna Cross said the reductions would save more than £1.1bn in 2027, with around 60% of the cuts falling on support functions, including fewer developers, "as AI makes our people more productive." Executives confirmed roughly 1,000 workers had already gone since the start of the year.
Chief executive CS Venkatakrishnan was more cautious about crediting AI directly, saying deep investment in technology and simpler processes was "driving the bulk of the efficiency gains", with AI the "icing on the cake" that "may have a more important role to play in the future". He said the bank had been applying AI where its infrastructure was already modern.
The cuts come months after Standard Chartered, another UK-headquartered bank, announced plans to shed more than 7,000 jobs, about 15% of its back-office roles, by 2030 as it ramps up AI use. Barclays' announcement came alongside strong results: £2.3bn in pre-tax profits for the July to September quarter, up 12% year on year, plus a further £500m for investors, taking total shareholder returns since January to £2.8bn.
The profits land a week before the 28 October budget, where the government is expected to raise bank taxes. Venkatakrishnan said Barclays could absorb higher levies, calling the impact bearable, while the TUC argued banks making bumper profits should pay more.