Barclays to cut 5,000 jobs as it leans on AI

Barclays is cutting 5,000 jobs as it increases its reliance on artificial intelligence^1,2. The bank said its greater use of AI will lead to a 5% reduction in its workforce¹.

The cuts equate to the loss of 5% of its 93,000 global staff⁴. A Barclays executive said the reductions, affecting about 5% of full-time roles, come as “AI makes our people more productive”⁵. The bank’s bosses hailed advances in AI productivity as they announced the cuts⁴.

The bank is turning to AI to improve efficiency³. Chief executive C.S. Venkatakrishnan discussed the bank’s third-quarter earnings, economic volatility, the upcoming UK budget and private credit⁶. He outlined three forces to watch in the bond market⁶.

Why it matters to investors

Barclays has put a number on what AI means for its headcount: 5,000 roles, or about 5% of the workforce^1,5. Its executives framed the cuts as a productivity gain, with AI making remaining staff more productive^4,5.

For bank investors, that turns a broad claim about AI into a cost figure that can be tracked. The bank’s stated aim is efficiency³, and the scale of the cuts is set against a global staff of 93,000⁴.

The announcement arrives alongside other pressures on the bank. The Bank of England has been examining claims that Barclays understated risks linked to its financing for private credit funds, according to a report cited in the coverage³. Venkatakrishnan addressed private credit as he discussed the quarter⁶.

Regulators are also watching AI more broadly. The Bank of England’s governor has warned that the AI boom could trigger market shocks².

What to watch

Investors will watch how quickly the 5,000 cuts are made and whether they show up in the bank’s costs in later quarters^1,4. The bank’s claim that AI makes its people more productive will be tested by results⁵.

The Bank of England’s examination of the private credit claims is a separate issue for the bank, and any finding would bear on how its exposure is judged³. Venkatakrishnan pointed to the upcoming UK budget and economic volatility as forces to watch⁶.