- Barclays is cutting 5% of its global headcount thanks to AI efficiency increases
- The company has been making "deep investments" in new technology, and AI is the "icing on the cake"
- 1,000 positions have already been removed, with the rest expected by the end of the year
Barclays has announced it will cut 5,000 jobs by the end of 2026 as part of a broad restructuring that will see more processes handled by artificial intelligence.
The positions of 1,000 employees have already been closed with the removal of another 4,000 employees expected to happen before the end of the year.
The figure represents 5% of Barclays' global headcount, with the majority of posts being closed involved in operational and functional roles in the UK retail banking arm, but investment banking will also see job cuts.
AI increasing efficiency
The reasoning given by Barclays for the cuts include new technological investments, with AI helping to make processes more efficient by automating workflows.
“We are positioning Barclays for the future, building the workforce and skills needed to deliver our strategy and meet the evolving needs of our customers and clients,” a Barclays spokesperson told The Guardian.
“In doing so we are committed to helping our colleagues develop and build rewarding careers, while meeting the changing needs of customers and clients and ensuring Barclays continues to succeed in the years ahead.”
Chief executive CS Venkatakrishnan told reporters the company had been making “deep investments” in technology and process simplification, adding, “That is driving the bulk of the efficiency gains that you’ve seen so far. AI has an important role to play and may have a more important role to play in the future.”
Venkatakrishnan also labelled AI as the “icing on the cake” in those investments.
The announcement was made on a call with journalists where the company also reported a profit of £2.3 billion ($3 billion) for the July to September period - an increase of 12% over the previous year.
Chief financial officer Anna Cross said the cuts were part of a plan to save the company £1.1 billion ($1.4 billion) in 2027. “These actions involve an expected reduction of circa 5000 full time employees, around 60% of the group actions relate to support functions, including theory developers,” Cross said. “AI makes our people more productive.”