Barclays cutting 5,000 jobs as it increases reliance on AI

Barclays is cutting about 5,000 jobs this year as the British banking group leans further into artificial intelligence to reshape how it works.

The bank said 1,000 roles had already gone, with a further 4,000 reductions to be completed by the end of the year. The cuts amount to roughly 5% of its global workforce and are expected to fall most heavily on operational and back-office functions.

The job losses cap a three-year cost-cutting programme that has focused mainly on Barclays' UK retail arm, although its investment banking division has also been affected. The bank framed the reductions as the product of a wider modernisation drive, saying investment in technology — with AI the "icing on the cake" of its strategy — is simplifying and improving the business.

Group chief executive CS Venkatakrishnan said the cuts were the result of significant investment in technology designed to streamline operations.

The announcement came alongside results showing a £2.3bn profit for the three months to September — higher than the same period a year earlier, but slightly below analysts' forecasts.

The cuts will add to a growing debate across the financial industry about how AI and automation are reshaping employment, with analysts watching closely for signs that heavy spending on new technology is beginning to pay off.