Barclays to cut 5,000 jobs in AI efficiency drive

Barclays said Thursday it plans to cut about 5,000 jobs, or roughly five percent of its global workforce, by the end of 2026 as part of an AI-linked efficiency drive.

The British bank said in an earnings presentation that it was carrying out organisational simplification and technology changes driven by AI. It said about 60 percent of the job losses relate to support functions, including fewer developers as AI makes staff more productive.

The announcement came as Barclays reported that profit after tax rose 13 percent to £1.65 billion, or $2.2 billion, in the third quarter, up from £1.46 billion a year earlier. Total group income rose three percent to £7.37 billion, while equities revenue increased 47 percent year on year.

Chief executive C. S. Venkatakrishnan cited continued operational and financial momentum and said the investment bank delivered strong equities performance.

AJ Bell investment director Russ Mould said the AI announcement came as Barclays failed to match expectations with its third-quarter performance, and said investors also faced concerns over a possible increase in UK banking taxes and a reported probe into possible misrepresentation of risks in its private credit portfolio.