Barclays to Cut 5,000 Jobs in AI Efficiency Push

According to CNBC, Barclays announced plans to cut 5,000 jobs, about 5% of its workforce, as part of an AI‑linked efficiency push. The New York Times reported the move as an illustration of a company believing it can be more efficient with fewer workers because of AI.

In its third‑quarter earnings statement, Barclays said it was structurally reducing the cost base to generate capacity for investment. The earnings presentation noted that 60% of the cuts would be in support functions, including developers.

Barclays’ third‑quarter pre‑tax profit rose 12% year on year to £2.3 billion, matching LSEG‑compiled forecasts. Group income for the period was £7.4 billion, below analysts’ estimate of £7.61 billion.

Net interest income was broadly unchanged at £3.91 billion. Its CET1 capital ratio edged down to 14.2% from 14.3% at the end of the second quarter. Return on tangible equity fell to 11.7% from 16.1%.

Shares in the bank were almost 1% lower by 8:50 a.m. in London, less than an hour into the trading day.