Barclays plans to cut 5,000 jobs, advancing AI-driven efficiency gains
Barclays announced plans to cut 5,000 positions, about 5% of its workforce, as part of efficiency measures related to artificial intelligence. Roughly 60% of the layoffs are expected to fall in support functions, including developers; the earnings materials describe the results as organizational streamlining and AI-driven technical transformation efficiency. The bank's third-quarter pre-tax profit rose 12% year over year to £2.3 billion, while group revenue was £7.4 billion, below analysts' expectations of £7.61 billion.
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In its quarterly earnings report, Barclays directly linked the layoffs to AI-driven technical efficiency, offering a window into how large financial institutions translate AI investment into organizational and cost structures.
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British lender Barclays has revealed plans to cut 5,000 jobs — about 5% of its total workforce — as part of an artificial intelligence-linked efficiency push.
In its third-quarter earnings statement Thursday, Barclays said it was "structurally reducing the cost base to generate capacity for investment."
About 60% of the cuts are expected to be in support functions, including developers, according to the earnings presentation, which also noted an outcome was "organisational simplification and technology change efficiency driven by AI."watch nowVIDEO8:3208:32Barclays CEO outlines the three forces to watch in the bond marketSquawk Box Europe
Shares in the bank were almost 1% lower by 8:50 a.m. in London (3:50 a.m. E.T.), less than an hour into the trading day.
Barclays' third-quarter pre-tax profit rose 12% year on year to £2.3 billion ($3.1 billion), matching LSEG-compiled forecasts. Group income for the period was £7.4 billion, below analysts' estimate of £7.61 billion.Barclays.
Net interest income was broadly unchanged at £3.91 billion. Its CET1 capital ratio, a measure of financial solvency, edged down to 14.2% from 14.3% at the end of the second quarter. Return on tangible equity fell to 11.7% from 16.1%.Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.