Barclays to cut 5,000 jobs as AI takes on more work

Barclays is cutting around 5,000 jobs - roughly 5% of its global workforce - as it brings more artificial intelligence into its operations. About 1,000 posts have already closed, with a further 4,000 expected to go by the end of this year.

The reductions centre on the UK retail bank, though some UK back-office work is carried out in India, where a significant share of the cuts is expected to fall. Around 60% will hit support functions, including developers.

Barclays Group chief executive CS Venkatakrishnan said the cuts stem from heavy investment in technology to simplify the business. "AI has an important role to play and may have a more important role to play in the future," he said, adding: "AI is the icing on the cake not the cake."

The bank reported a £2.3bn pre-tax profit for the three months to September, up 12% on a year earlier. Group income of £7.4bn fell short of analyst forecasts of £7.61bn. Barclays said it expects its efficiency measures to deliver a further £1.1bn of savings in 2027.

AJ Bell investment director Russ Mould said Barclays was "reaching for the AI lever, expecting to cut a decent chunk of its workforce", while Quilter Cheviot analyst Will Howlett said the cuts showed how significantly AI and automation could reshape banking.