Barclays cuts 5,000 jobs as it expands AI use

Barclays is cutting around 5,000 staff as it expands AI use and modernises its operations. The bank has already closed 1,000 posts and expects a further reduction of 4,000 by the end of this year, amounting to around 5% of its global workforce. Cost reductions focus on UK retail banking, with a significant proportion of cuts expected in India, where some UK back-office functions are performed.

Around 60% of the cuts will affect support functions, including developers. Chief executive CS Venkatakrishnan said technology investment was simplifying the business and that AI would be deployed at scale, but described it as the “icing on the cake” rather than the sole driver. Not all the reductions are attributable to AI.

Unite general secretary Sharon Graham accused Barclays of using AI as an excuse to discard staff and urged employers to invest in retraining. Banking analysts said automation could reduce staffing needs, while noting that security and customer-service concerns remain important considerations for wider deployment.

Barclays reported £2.3bn profit in the three months to September, higher than a year earlier but slightly below forecasts. The bank expects its efficiency measures to deliver a further £1.1bn of savings in 2027.