Barclays plans to cut 5,000 jobs, about 5% of its workforce, and links the reductions to AI-driven efficiency. About 60% of the cuts fall in support functions. The announcement came alongside third-quarter results that matched profit forecasts but missed on income.
Barclays plans to cut 5,000 jobs, about 5% of its total workforce, as part of an artificial intelligence-linked efficiency push. The British lender disclosed the move in its third-quarter earnings statement.
In its earnings presentation, Barclays linked the cuts specifically to organisational simplification and technology change efficiency driven by AI. Around 60% of the reductions will hit support functions, including developers, according to the presentation.
Cuts are already under way
Barclays said 1,000 posts had already been closed and expects a further reduction of 4,000 to be complete by the end of this year. The bank is reaching the end of a three year cost-cutting programme focused primarily on its UK retail banking arm, although the investment banking division is also affected.
CEO CS Venkatakrishnan said the cuts stem from significant investment in technology. According to the BBC, he described AI as "icing on the cake" of the strategy, and said it may have a more important role in the future.
Profit matches forecasts, income misses
Third-quarter pre-tax profit rose 12% year on year to £2.3 billion, matching LSEG-compiled forecasts. Group income came in at £7.4 billion, below analysts' estimate of £7.61 billion.
Net interest income was broadly unchanged at £3.91 billion. Return on tangible equity fell to 11.7% from 16.1%, while the CET1 capital ratio edged down to 14.2% from 14.3% at the end of the second quarter.
Shares in the bank were almost 1% lower by 8:50 a.m. in London.
Sources: CNBC, Business Insider, BBC News
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