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Barclays to cut 5,000 jobs as bank’s bosses hail AI productivity advances
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Barclays is cutting 5,000 jobs — about 5% of its 93,000-strong global workforce — under cost-cutting plans its bosses say are being driven by advances in artificial intelligence. The bank has already shed 1,000 staff since January.
Chief financial officer Anna Cross told reporters on Thursday that the reductions form part of plans to save more than £1.1bn in 2027. Around 60% of the group actions relate to support functions, including fewer developers, as AI makes employees more productive.
Chief executive CS Venkatakrishnan said the lender had made "deep investments" in technology and simplified processes, driving most of the efficiency gains. He called AI the "icing on the cake," saying it may play a larger role in future, though he did not specify how many cuts were directly tied to it.
The news came as Barclays reported £2.3bn in pre-tax profits for the July to September quarter, up 12% from £2.1bn a year earlier. It also announced a further £500m share buyback, taking total returns to shareholders since January — through buybacks and dividends — to £2.8bn.
The reductions follow Standard Chartered's plan to cut more than 7,000 jobs over four years, about 15% of its back-office roles by 2030. Barclays' UK retail arm posted a 6% rise in net interest income to £2bn — a figure campaigners cite in calls for a bank tax.
The Trades Union Congress, which campaigns for a higher bank tax, said lenders should pay more. General secretary Paul Nowak said the big four banks had made £200bn in profit since 2021, profits "underpinned by mortgage misery for millions."
Chancellor John Healey is expected to announce a hike on banks in the 28 October budget, as the government seeks revenue to fund cost-of-living support. Healey has promised the budget will back entrepreneurs and cut the "cost of business."
