Barclays Cuts 5,000 Jobs and Cites AI Gains

Barclays plans to cut around 5,000 jobs, representing 5% of its 93,000 workforce globally, as part of plans to save more than £1.1 billion in 2027, according to The Guardian newspaper.

Anna Cross, the bank's Chief Financial Officer, told reporters on Thursday that the cuts involve around 5,000 full-time staff, and that about 60% of the actions relate to support roles, including fewer developers, because artificial intelligence makes staff more productive. The bank confirmed it has already laid off 1,000 employees since the beginning of the year.

Chief Executive C.S. Venkatakrishnan said the bank is investing heavily in technology and simplifying its operations, driving most efficiency gains so far, adding that AI "has an important role and could have a larger role in the future," describing it as an added bonus of modernizing the bank's technology. Sharon Graham, general secretary of the Unite union, criticized the move, saying workers "deserve better than this," and accused the company of using AI as "a pretext to shed its workforce."

The bank reported pre-tax profits of £2.3 billion for the July-to-September quarter, a 12% increase from £2.1 billion in the same period last year. Net interest income in UK retail banking rose 6% to £2 billion, while the bank's shares fell 2.57%. The bank intends to return an additional £500 million to investors, bringing total payouts since January through share buybacks and dividends to £2.8 billion.

What do these terms mean?

Net interest income: The difference between the interest a bank earns on loans and the interest it pays on deposits.

Pre-tax profit: The profit a company generates before deducting taxes, used to measure its operational performance.

Share buyback: A company purchasing its own shares from the market, a method to return capital to shareholders and boost share value.