Barclays said on Thursday that it would axe around 5,000 jobs by the end of 2026 as it increasingly uses artificial intelligence (AI) and other technology to curb expenses.
The cuts equate to roughly 5% of its global head count, Reuters reported, with about 1,000 roles already cut and another 4,000 set to be cut by year-end.
Of the remaining jobs, about 60% are support function positions that include software developers. This portion will be reduced as the bank cuts costs and automates more.
“The decrease is a result of the company’s investment in technology and efficiency initiatives, “said Barclays CFO Anna Cross.
AI is “the icing on the cake”, chief executive C.S. Venkatakrishnan said, adding that streamlining and modernising infrastructure are key to realising it.
The report comes after Barclays said it earned £2.3 billion profit in the third quarter, which was 12 per cent higher than a year earlier but fell short of predictions by analysts, Reuters reported.
The bank is close to the end of a three-year cost-cutting programme that has mainly targeted its UK retail operations, but which also cuts through to its investment banking business.
The decision underscores rising pressure on financial services firms to deliver productivity using automation and AI, while managing staffing costs.
