Barclays to cut 5,000 jobs, attributing efficiency gains to AI adoption
Barclays is eliminating 5,000 roles, roughly 5% of its 93,000 global workforce, by the end of 2026. Chief Executive CS Venkatakrishnan stated that AI is the "icing on the cake" for efficiency gains, following deep technology investments. The cuts, primarily in UK retail banking and support functions, aim to save over £1.1 billion in 2027, following similar AI-driven reductions at Standard Chartered.
Key points
- Barclays, a major UK-headquartered bank, is cutting 5,000 jobs, representing 5% of its 93,000 global employees, by the end of 2026.
- Chief Executive CS Venkatakrishnan described AI as the "icing on the cake" for efficiency gains, noting that deep technology investments and process simplification are driving the bulk of the improvements.
- Chief Financial Officer Anna Cross stated the restructuring aims to save more than £1.1 billion in 2027, with 1,000 roles already eliminated and 4,000 more expected to be cut this year.
- Approximately 60% of the job cuts affect support functions, including a reduction in developers, while the majority of remaining roles are in UK retail banking and investment banking.
- The move follows a similar trend at Standard Chartered, which announced plans to cut over 7,000 jobs over four years to ramp up AI usage and reduce back-office roles by 15% by 2030.
Barclays has announced a significant restructuring plan that will result in the elimination of 5,000 jobs by the end of 2026. The cuts affect approximately 5% of the bank's 93,000 global workforce. Chief Executive CS Venkatakrishnan stated that the bank has made deep investments in technology and process simplification, describing artificial intelligence as the "icing on the cake" for these efficiency gains. He noted that while infrastructure modernization drives the bulk of the improvements, AI plays a crucial role in automating workflows and enhancing productivity.
The financial impact of the restructuring is substantial, with Chief Financial Officer Anna Cross confirming that the measures are designed to save more than £1.1 billion in 2027. Of the total cuts, 1,000 positions have already been removed, with the remaining 4,000 expected to be eliminated by the end of the year. The reductions are concentrated in support functions, which account for 60% of the affected roles, including a decrease in the number of developers. The remaining cuts are primarily located within the UK retail banking arm and the investment banking division.
This strategic shift aligns with broader trends in the financial sector, where AI is increasingly used to streamline operations. The move follows a similar announcement by Standard Chartered, which plans to cut over 7,000 jobs over the next four years to integrate AI and reduce back-office roles by 15% by 2030. Barclays aims to position itself for the future by building a workforce equipped with the skills necessary to meet evolving customer needs while maintaining competitiveness through technological advancement.
Sources
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