Barclays Plans 5,000 Job Cuts in AI-Linked Efficiency Drive
publishers 37articles 40first reported 22 Oct, 08:30 UTCdeveloping since 22 Oct · 8 editions
Barclays plans to cut 5,000 jobs this year, equal to about 5% of its workforce, as the British bank pursues cost savings linked to artificial intelligence and broader organizational changes.
The bank said in its third-quarter earnings statement Thursday that it was “structurally reducing the cost base to generate capacity for investment.” About 60% of the planned reductions are expected to affect support functions, including developers, according to CNBC’s account of the bank’s earnings presentation. Barclays described the initiative as involving organizational simplification and technology-driven efficiency associated with AI.
The announcement came as Barclays reported a 12% year-over-year increase in third-quarter pretax profit to £2.3 billion ($3.1 billion), matching forecasts compiled by LSEG. Group income totaled £7.4 billion, below analysts’ estimate of £7.61 billion, while net interest income was broadly unchanged at £3.91 billion.
The bank’s common equity tier 1 capital ratio slipped to 14.2% from 14.3% at the end of the second quarter. Return on tangible equity declined to 11.7% from 16.1%. Barclays shares were almost 1% lower in early London trading Thursday.
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Written from 5 articles, 1 with the publisher's own text; 5 independent newsrooms once syndicated copies count as one; this version written within the hour the record first saw the story; the editor kept it as written.
- Publishers
- 37
- Source articles
- 40
- Given to the writer
- 5, 1 with the article's own text
- Independent newsrooms
- 5
- This version written
- within the hour the record first saw the story
- Second model (editor)
- kept as written
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
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