Barclays to cut about 5,000 jobs as third-quarter profit rises 12% to £2.3 billion

Barclays said on Thursday 22 October that it expects to reduce its workforce by about 5,000 full-time employees, around 5% of its roughly 93,000 staff, as it reported third-quarter results.

Pre-tax profit rose 12% from a year earlier to £2.3 billion, in line with forecasts compiled by LSEG, while group income of £7.4 billion was below analysts’ estimate of £7.61 billion, CNBC reported. The bank also announced a £500 million share buyback, according to the Guardian.

Barclays said it was “structurally reducing the cost base to generate capacity for investment.” Chief financial officer Anna Cross told reporters that about 60% of the cuts relate to support functions, “including fewer developers, as AI makes our people more productive,” and that they are part of plans to save more than £1.1 billion in 2027, the Guardian reported. Executives said about 1,000 roles had already been cut since the start of the year.

Chief executive C.S. Venkatakrishnan said investment in technology and simpler processes was “driving the bulk of the efficiency gains,” and described AI as the “icing on the cake.”

Sharon Graham, general secretary of the Unite union, said the bank was “using AI as an excuse” to cut jobs, and the union said it was in “urgent and frank” talks with Barclays. A spokeswoman for the UK prime minister’s office said job losses were a matter for the bank and that the government would support working people through changes brought by AI.

Barclays shares closed 2.3% lower, Reuters reported.

See also: eBay to cut about 1,000 jobs, or 9% of its workforce, in second round of layoffs this year.