AI efficiency drive: Barclays cutting 5,000 jobs as technology reshapes bank operations
Cuts across the workforce
Barclays is set to remove around 5,000 roles this year, equal to 5% of its worldwide workforce. Most of the affected positions are in operational and functional areas.
The bank is introducing more artificial intelligence into its processes as it makes the cuts. The information does not specify how many job losses are directly linked to AI.
Cost-cutting programme nears end
The reductions come as Barclays approaches the end of a three-year programme to lower costs. The effort has concentrated primarily on the bank’s UK retail business. The investment banking division is also affected by the programme, although the account does not give a breakdown of cuts by division.
Technology under scrutiny
Economists are monitoring company results for evidence that investment in new technology, particularly AI, is changing everyday operations. They are looking for signs of improved efficiency and lower employment. Barclays’ announcement comes amid that wider scrutiny, but the account does not quantify any efficiency gains from its use of AI.
Key points
- Barclays plans to cut around 5,000 staff this year.
- The planned reductions equal 5% of its global workforce.
- Most cuts are expected in operational and functional roles.
- The three-year cost-cutting programme has focused mainly on UK retail banking.