Politics · India Bureau
Barclays to cut 5,000 jobs as bank deploys AI to curb costs
The British banking giant Barclays announced plans to eliminate approximately 5,000 positions, representing 5% of its workforce, as it accelerates artificial intelligence adoption to reduce operational expenses. The move comes despite the bank posting a 12% increase in third-quarter profits to £2.3 billion.
LSN India ·
Barclays has announced a significant workforce reduction targeting around 5,000 employees this year, marking a strategic shift toward automation and artificial intelligence to streamline operations and control costs across the institution.
The job cuts represent roughly 5% of the bank's total workforce and form part of a broader restructuring initiative aimed at improving operational efficiency. The announcement underscores an industry-wide trend among major financial institutions to leverage AI technologies for back-office functions, customer service, and data processing roles.
Despite the planned reductions, Barclays reported strong financial performance in the third quarter, with profit climbing 12% to £2.3 billion. The results suggest the bank is prioritising profitability and shareholder returns even as it implements substantial personnel reductions, reflecting competitive pressures and investor expectations within the global banking sector.
The redundancies are expected to be distributed across various divisions and geographies where Barclays operates. The bank has not specified which departments or regions will be most affected, though AI-driven automation typically impacts roles in transaction processing, compliance, and routine administrative functions.