Barclays is cutting about 5,000 jobs this year as it increases its use of artificial intelligence and other technology.
The cuts amount to about 5% of the bank’s global workforce, with 1,000 jobs already cut and a further 4,000 expected to be cut by the end of the year, according to media reports at an results conference earlier today.
The announcement came as UK bank Barclays announced that loans and advances increased by £8.8 billion to £225.3 billion during the first nine months of the year, driven primarily by growth in home loans.
Including, Barclays told reporters at its results conference this morning guardian, About 60% of the job cuts will be in support positions.
Q3 results indicate the bank is “structurally reducing its cost base” through expected technology-enabled reductions in full-time staff, creating the ability to further invest in the business.
CEO CS Venkatakrishnan said the bulk of the efficiency gains come from technology investments made over several years, with artificial intelligence playing an increasing role.
He described AI as the “icing on the cake” and not the main driver of efficiencies.
Barclays received £201m of structural cost measures during the third quarter and plans to take a further £300m in the final three months of the year.
The bank expects the group’s costs to reach about 18.5 billion pounds this year and 18.4 billion pounds in 2027.
The group announced a 12% increase in third-quarter pre-tax profits to £2.3bn, while income increased 3% to £7.4bn.
It also announced a further share buyback worth £500 million.
