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Barclays, one of the world's largest banks, announced plans to cut 5,000 jobs this year, which is about 5% of its workforce. The British bank made the announcement Thursday (October 22) in its third-quarter earnings statement, attributing the job cuts to "organizational simplification, and technology change efficiency, driven by AI." Barclays stated that 1,000 job cuts have already been made, with the remaining reductions expected by the end of the fourth quarter.
The move is part of a broader trend where companies are increasingly adopting artificial intelligence, leading to job eliminations. According to a report by Challenger, Gray & Christmas, AI adoption is a significant factor in the recent surge of layoffs, with technology businesses leading private-sector job cuts. The report highlighted that October saw 153,074 job cuts, nearly triple the number from the same month in 2024.
In addition to the broader layoffs, Barclays is also planning to eliminate over 200 positions in its investment banking division. This strategy, led by CEO C.S. Venkatakrishnan, aims to enhance the division's profitability. According to Investing.com, the layoffs will impact employees across investment banking, global markets, and research, with managing directors being among the most senior roles affected.
These job cuts are expected to provide Barclays with increased capacity to allocate resources to priority areas, such as European rates, equity derivatives, and securitized product trading. Despite the reductions, Barclays is not pulling back from any products or asset classes, as reported by Bloomberg.