Barclays said 1,000 posts are already closed and expects a further 4,000 job cuts to be complete by the end of this year, about 5% of its global workforce. The bank is cutting around 5,000 staff as it brings more AI into its work processes, but not all of the cuts are due to AI.
CS Venkatakrishnan, Barclays Group chief executive, said the bank will use AI widely. “We will employ the AI at scale,” he said. “But AI is the icing on the cake, not the cake.”
HSBC, Standard Chartered and Danske Bank have also flagged AI-related job cuts this year. Outside banking, Oracle said in its annual report that deploying AI had already led to workforce cuts and could lead to more.
What Is Behind the Cuts?
Barclays is reaching the end of a three-year cost-cutting programme focused on UK retail banking, and investment banking is also affected. Around 60% of the job cuts will fall in support functions, including developers.
Some UK back office work is done in India, where a significant proportion of the cuts is expected. Reports do not give a specific number of UK jobs affected or the India share, and Barclays’ statement does not say which roles AI will replace.
In the three months to September, Barclays made £2.3 billion profit, higher than a year earlier but slightly below forecast. The bank expects efficiency measures to deliver a further £1.1 billion of savings in 2027.
What Do Analysts and the Union Say?
Russ Mould at AJ Bell said Barclays had missed expectations even after “reaching for the AI lever”. Sharon Graham of Unite accused the bank of using AI as an excuse to cut staff.
Barclays has not said how many of the 5,000 roles are down to AI. The bank talks about AI making people more productive, but it has not given a number. That is consistent with what we have seen elsewhere: companies announce AI-related savings or spending, then leave the precise split out.
Author: Grace Sharp
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