British banking giant, Barclays, is set to cut about 5,000 jobs as it expands its use of artificial intelligence and other technologies to improve efficiency across its operations.
The bank disclosed that approximately 1,000 positions had already been eliminated, with a further 4,000 job cuts expected to be completed by the end of 2026.
The planned reductions represent about five per cent of its global workforce, with most affected employees working in operational and functional roles.
Barclays attributed the job losses to investments in technology that have helped simplify operations and make certain processes more efficient.
The cuts form part of a three-year cost-reduction programme, which has focused mainly on its UK retail banking business but has also affected its investment banking division.
The announcement came as the bank reported a profit of £2.3bn for the latest three-month period, exceeding its earnings from the corresponding period a year earlier, although the figure fell slightly short of analysts’ expectations.
Businesses’ financial results are being closely monitored by economists seeking evidence that investments in new technologies, particularly artificial intelligence, are improving productivity, reducing operating costs and affecting employment levels.
Barclays Group Chief Executive, CS Venkatakrishnan, said the job reductions reflected substantial investments in technology aimed at making the bank’s operations simpler and more effective.
“That is driving the bulk of the efficiency gains that you’ve seen so far,” he said.
“AI has an important role to play and may have a more important role to play in the future.
“I’ve often said that it is the icing on the cake – it’s not the cake – because you need to do the infrastructure build to get the benefits of AI.”
The bank added that support functions would account for approximately 60 per cent of the planned job cuts, with developers among those affected.
