Barclays plans to cut around 5,000 jobs, or 5% of its workforce, this year as it simplifies operations and pursues technology efficiencies driven by AI.
Approximately 60% of the cuts in its second-half restructuring plans will affect support functions, including developers, according to the bank's Q3 earnings presentation on Thursday morning.
Alongside the cuts, Barclays reported a third-quarter pretax profit of £2.3 billion ($3.1 billion), up 12% year over year, while revenue increased 3% to £7.4 billion ($9.9 billion). Its investment bank had a weaker quarter, with fixed-income trading revenue falling 19%, while the group recorded £201 million ($268.7 million) in structural cost actions as part of the restructuring drive behind the planned job cuts.
CFO Anna Cross told reporters that 1,000 of the roles had already gone, with the remainder to be cut by the end of the year.
Barclays' restructuring plans come amid growing concerns about AI's impact on employment more generally. Jack Dorsey's payments firm Block cut around 40% of its workforce earlier this year as it shifted toward smaller, AI-focused teams, while Meta has also pushed toward flatter AI teams.
Microsoft co-founder Bill Gates is among the voices warning of rising unemployment without a coordinated response to AI-driven disruption.
UK budget looms
Meanwhile, new UK Chancellor John Healey is due to deliver his first budget on Oct. 28 as markets brace for further potential tax rises, including levies on major banks. Banks have argued that they already face higher taxes in the UK compared to other jurisdictions and an increased burden would curb lending.
Barclays shares (LSE: BARC) closed down 2.2% in London on Thursday at £4.10, with a year-to-date decline of 14.1%, per TradingView, in line with its UK and European peers.