Barclays to Cut 5,000 Jobs Amid AI Push and Mixed Q3 Results
Barclays plans to cut 5,000 jobs, representing 5% of its workforce, driven by artificial intelligence investments and cost-reduction efforts following third-quarter results.
Barclays will cut 5,000 jobs, or about 5% of its workforce, as part of efforts to reduce costs and improve efficiency through artificial intelligence (AI) investments. The British bank stated that it has already eliminated about 1,000 jobs and will complete the remaining cuts by the end of the year.
Most of the cuts are expected to take place in the United Kingdom, the bank's home market, focusing primarily on operational and back-office roles. However, Barclays noted that the cuts will affect its workforce globally.
AI Integration and Strategy
Barclays Group CEO C.S. Venkatakrishnan said the cuts rely on technological investments the bank has made over the years and continues to make. "AI plays an important role, and may play an even more important role in the future," he said.
However, he stressed that artificial intelligence does not stand on its own and that to benefit from it, proper infrastructure must be established first. "I have often said it's the icing on the cake, it's not the cake itself," he noted.
Financial Results and Market Reaction
The job cuts announcement coincided with the reporting of third-quarter results. Barclays posted a profit of 2.3 billion pounds, a 12% increase compared to the same period last year, but lower than analysts' forecasts. Bond trading operations performed weaker than expected, while equity trading showed strong performance. The bank's stock fell by more than 2.5%.
"The cuts were announced after the bank missed expectations in the third quarter, and a significant share buyback program failed to completely alleviate investor disappointment," said Russ Mould, investment director at AJ Bell.
