Barclays is preparing to lay off 5,000 employees, representing 5% of its global workforce, as part of a technical modernization plan aimed at saving £1.1 billion, amid union criticism over the use of artificial intelligence as a pretext for workforce reductions.
Cutting 5,000 jobs, accounting for 5% of the global workforce
Wave of job cuts in global banks and criticism from Unite union
Statements by CEO Venkatakrishnan and quarterly financial performance
Concentration of layoffs in support roles and programmers, and savings targets
FAQs
Cutting 5,000 jobs, accounting for 5% of the global workforce
British bank Barclays intends to lay off approximately 5,000 employees alongside the introduction of more artificial intelligence technologies into its daily operations and procedures. The banking group explained in its statement that 1,000 jobs have already been eliminated and canceled, and it expects to complete the reduction of an additional 4,000 jobs by the end of the current year, bringing the total to about 5% of the bank’s total global workforce.
The cost-cutting measures are concentrated in the UK retail banking arm, though some back-office functions supporting UK operations are performed in India, where a significant share of the job reductions is expected to take place. Barclays stated that these changes stem from an ongoing modernization plan, describing the use of artificial intelligence as the “icing on the cake” for its comprehensive strategy. Although the bank emphasizes that not all layoffs are due to artificial intelligence alone, their large scale will raise further concerns about the impact of new technology on employment.
Wave of job cuts in global banks and criticism from Unite union
Corporate spending on artificial intelligence is increasing alongside claims that new tools can replace some core tasks currently performed by employees, such as administrative work and programming tasks. HSBC, Standard Chartered, and Danske Bank also signaled AI-related job cuts this year. Russ Mould, investment director at AJ Bell, said: “It is a hot and controversial topic,” but noted that banks have not yet taken major steps toward the full-scale generalization of artificial intelligence as they study security and customer service implications before deploying it for financial savings, adding: “Any company at any time needs to keep its cost base under control, and it will be interesting to see what other banks say in their results over the coming weeks.”
In contrast, Sharon Graham, general secretary of the Unite union representing banking sector workers, launched a sharp attack on the decision, stating that the company “is using AI as an excuse to get rid of its loyal workforce who have suffered for a long time.” Graham added: “Employers should focus on upskilling employees so they can remain in their jobs as the work environment changes due to new technology; instead, Barclays is guilty of a rushed and short-sighted approach.”
Statements by CEO Venkatakrishnan and quarterly financial performance
Barclays is approaching the end of a three-year cost-cutting program primarily focused on its UK retail banking arm, though its investment banking division has also been affected. Russ Mould of AJ Bell noted that despite “pulling the AI lever,” Barclays failed to match expectations with its financial results, as the bank revealed profits of £2.3 billion in the three months ending in September—higher than the same period a year ago but slightly below expectations.
CS Venkatakrishnan, group chief executive of Barclays, said the job cuts resulted from the heavy investments the bank is pouring into technology to simplify and improve its business. Venkatakrishnan added: “AI has an important role to play and may have an even more important role in the future, and we will employ AI on a broad scale, but AI is the icing on the cake rather than the cake itself, because you first need to build the infrastructure to reap the benefits of AI.”
Concentration of layoffs in support roles and programmers, and savings targets
Barclays explained that nearly 60% of job eliminations will occur within support and backing roles, including among developers and programmers. Meanwhile, Will Howlett, financial sector analyst at Quilter Cheviot, said these cuts demonstrate “just how radically AI and automation can reshape the banking industry over the next few years.”
Howlett added: “Banks have spent heavily on technology for many years, but we are increasingly reaching the point where that investment translates into a need for fewer humans to run the business.” Barclays confirmed it expects operational efficiency measures to yield additional financial savings of £1.1 billion by 2027.
FAQs
Question: How many jobs does Barclays intend to cut and what percentage of the workforce do they represent?
Answer: The bank intends to cut about 5,000 jobs by the end of the current year, including 1,000 jobs already eliminated and 4,000 jobs to be completed before year-end, representing about 5% of its global workforce.
Question: In which departments and geographic regions are Barclays’ layoffs concentrated?
Answer: The reductions are concentrated in the UK retail bank and its supporting back-office operations in India, with about 60% of layoffs occurring in support roles, including developers.
Question: How did the CEO of Barclays describe the role of artificial intelligence in this move?
Answer: CS Venkatakrishnan stated that the bank will deploy AI on a broad scale, but described it as the icing on the technical infrastructure modernization strategy rather than the strategy itself.
Question: What are the financial savings and profits announced by Barclays?
Answer: The bank achieved a profit of £2.3 billion in the quarter ending in September and expects efficiency measures to save an additional £1.1 billion in 2027.
