Barclays to cut 5,000 jobs as AI reshapes banking

Barclays on Thursday announced to cut 5 percent of its workforce in its push to expand the role of artificial intelligence in the banking services.

The major motive behind reducing the workforce is to “structurally reduce the cost base to generate capacity for investment.”

According to Barclays, the workforce reductions stem from organizational streamlining and AI-driven technological efficiencies, with support functions and development teams bearing the brunt of the cuts.

According to CFO Anna Cross, the company has completed 1,000 cuts and plans to eliminate another 4,000 positions by the end of Q4.

Soon after the announcement, the shares in the bank dropped 1 percent in London, just less than an hour into the trading day.

The banking company reported a 12 percent year-on-year increase in third-quarter pre-tax profit to £2.3 billion ($3.1 billion), in line with LSEG consensus estimates.

However, group revenue fell short of expectations, coming in at £7.4 billion compared to the projected £7.61 billion.

In recent years with the expansion of AI use in various industries, the employees have witnessed massive job cuts.