London (GNP): British banking giant Barclays plans to cut around 5,000 jobs by the end of 2026, as it turns to artificial intelligence (AI) to make its operations more efficient. The reduction equals roughly five per cent of its global workforce.
The bank announced the plan on Thursday alongside its third-quarter results, which show the cuts are coming at a time of rising profits. Profit after tax grew 13 per cent year-on-year to £1.65 billion ($2.2 billion), compared with £1.46 billion a year earlier.
Barclays said around 60 per cent of the job losses will fall on support functions. The bank also expects a reduction in developer positions, because AI allows employees to work more productively.
Chief executive C. S. Venkatakrishnan pointed to continued progress in the bank’s operational and financial performance. He singled out the investment banking division, which delivered strong results in equities.
The figures back that up. Revenue from equities surged 47 per cent year-on-year, while total group income rose three per cent to £7.37 billion in the quarter.
The market response was more muted. Barclays’ share price edged higher after the announcement, but investors remain concerned about parts of the bank’s financial performance and the wider business outlook.
Russ Mould, investment director at AJ Bell, said the bank had failed to meet expectations for its third-quarter performance. He added that its share buyback announcement had not fully eased investor disappointment.
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Mould also pointed to rising costs and two major challenges ahead. One is an expected increase in taxes on the banking sector in next week’s UK budget. The other is a reported investigation into the possible misrepresentation of risks in the bank’s private credit portfolio.
Against that backdrop, the redundancies reflect a wider shift among major financial institutions, which are increasingly using AI and technological change to raise productivity and streamline operations. The trend also raises questions about the technology’s impact on jobs in the banking sector.
Barclays said in its earnings presentation, “organisational simplification and technology change efficiency driven by AI.”
