As Barclays increases reliance on AI, cutting 5,000 jobs nears end of cost-cutting drive

Cuts span banking operations

Barclays’ cost reductions are concentrated in its UK retail banking arm. Some UK back-office functions are handled in India, where many of the expected job cuts are likely to fall.

The programme also affects the investment banking division, although its primary focus has been the UK retail bank. Barclays is nearing the end of the three-year effort.

AI investment under scrutiny

Economists have been examining company results for evidence that spending on new technology, especially AI, is improving everyday operations and lowering employment. The article quotes an unnamed speaker saying AI could become more important, while noting that infrastructure must be built before its benefits can be realised. It does not identify that speaker.

Analyst questions financial results

Russ Mould, investment director at AJ Bell, said Barclays was turning to AI with an expectation of reducing a substantial part of its workforce as use of the technology grows. Mould also said the bank’s financial results had not met expectations. He argued that years of technology spending across banks are nearing a point where fewer people may be needed to operate their businesses.