Barclays to shed around 5,000 roles as technology and AI reshape operations

Barclays is reducing its staff by roughly 5,000 people as it brings more artificial intelligence into the way it works, according to BBC News. The cuts represent about 5% of the banking group's global workforce.

Scale and timing

The bank said around 1,000 positions have already gone, with the remaining 4,000 reductions expected to be finished by the end of this year. Most of the affected jobs are in operational and functional areas, and Barclays indicated that about 60% of the total will come from support functions, a group that includes developers.

The reductions come as Barclays approaches the end of a three-year programme aimed at lowering costs. That effort has concentrated mainly on the UK retail banking business, although the investment banking division has also been touched by the changes.

AI as one part of a wider plan

The group presented the job cuts as the outcome of a continuing modernisation strategy rather than a result of AI alone. Chief executive CS Venkatakrishnan said heavy investment in technology to simplify the business was responsible for most of the efficiency gains achieved so far. He described AI as the "icing on the cake" rather than the core of the plan, arguing that the underlying infrastructure must be built first before the benefits of AI can be realised. He added that the technology could become more significant in the future.

Quarterly results

Alongside the workforce announcement, Barclays reported a profit of £2.3bn for the three months to September. That figure was higher than in the same period a year earlier but came in slightly below forecasts.

The update arrives as economists study company results for evidence that spending on new technology, and on AI in particular, is changing everyday operations by improving efficiency and reducing the number of people needed.

What it means for business readers

For those following the business world, the announcement offers a concrete example of how large employers are linking technology investment to staffing decisions. It suggests that back-office and support roles may be among the first areas affected as firms modernise, and that executives are framing AI as an addition to broader systems upgrades rather than a stand-alone replacement for workers. Businesses weighing their own technology plans may watch how such changes affect costs, profits and service over the coming quarters.