Barclays is cutting around 5,000 jobs this year as it increases its use of AI and other technology.
The reductions amount to around 5% of the bank’s global workforce, with 1,000 roles already cut and a further 4,000 expected to go by the end of the year, according to reports by media at its results briefing earlier today.
The announcement came as Barclays UK reported that loans and advances increased by £8.8bn to £225.3bn during the first nine months of the year, primarily driven by growth in mortgages.
Barclays told journalists at its results briefing this morning, including The Guardian, that around 60% of the job reductions would be in support functions.
Its third-quarter results say the bank is “structurally reducing the cost base” through expected technology-enabled reductions in full-time equivalent staff, creating capacity for further investment in the business.
Chief executive CS Venkatakrishnan said the bulk of the efficiency gains were coming from technology investments made over several years, with AI playing an increasing role.
He described AI as “the icing on the cake” rather than the main driver of the efficiencies.
Barclays took £201m of structural cost actions during the third quarter and plans a further £300m in the final three months of the year.
The bank expects group costs of around £18.5bn this year and £18.4bn in 2027.
The group reported a 12% rise in third-quarter pre-tax profit to £2.3bn, while income increased by 3% to £7.4bn.
It also announced a further £500m share buyback.
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