Barclays is cutting around 5,000 staff as it expands its use of technology including artificial intelligence in its operations. The banking group said 1,000 positions had already been eliminated, with a further 4,000 reductions expected to be completed by the end of the year. The cuts represent 5% of its global workforce, with most affecting operational and functional roles rather than customer-facing positions.
The job losses stem from investments in technology that the bank says make work processes more efficient. Around 60% of the cuts will fall within support functions, including among developers. Barclays is nearing the end of a three-year cost-cutting programme focused primarily on its UK retail banking arm, though its investment banking division is also affected.
CS Venkatakrishnan, the banking group's chief executive, said the job cuts resulted from significant technology investment designed to simplify and improve the business. He described the efficiency gains seen so far as driven by the technology foundation work, with artificial intelligence playing a supporting role. "AI has an important role to play and may have a more important role to play in the future," he said. "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."
Barclays reported £2.3bn profit in its latest three-month reporting period, higher than the same period a year earlier, though slightly below forecast. The results come as economists monitor company earnings closely for evidence that technology investment, particularly in artificial intelligence, is translating into improved operational efficiency and lower staffing costs across the financial services industry.