Barclays to slash 5,000 jobs in AI efficiency push
U.K. banks Barclays said Thursday it plans to cut 5,000 staff, citing efficiency savings from AI.
Key points
- Barclays plans to cut 5,000 jobs, about 5% of its workforce, in an efficiency push linked to artificial intelligence.
- About 60% of the cuts are expected in support functions, including developers.
- Barclays' third-quarter pre-tax profit rose 12% year on year to £2.3 billion, while group income of £7.4 billion fell short of analysts' estimate of £7.61 billion.
Barclays has announced plans to cut 5,000 jobs, roughly 5% of its total workforce, as part of an efficiency drive tied to artificial intelligence. The British lender disclosed the plan in its third-quarter earnings statement on Thursday.
The bank said it was "structurally reducing the cost base to generate capacity for investment," according to its earnings statement. Shares in Barclays were almost 1% lower by 8:50 a.m. in London, less than an hour into trading.
Where the cuts fall
About 60% of the reductions are expected in support functions, including developers, according to the earnings presentation. The presentation said the outcome was "organisational simplification and technology change efficiency driven by AI."
structurally reducing the cost base to generate capacity for investment
— Barclays
Quarterly financial results
Third-quarter pre-tax profit rose 12% year on year to £2.3 billion ($3.1 billion), matching LSEG-compiled forecasts. Group income was £7.4 billion, below analysts' estimate of £7.61 billion.
Net interest income was broadly unchanged at £3.91 billion. The CET1 capital ratio edged down to 14.2% from 14.3% at the end of the second quarter, and return on tangible equity fell to 11.7% from 16.1%.
