Barclays to cut 5000 jobs by 2026

Barclays, a major British bank, announced plans to eliminate about 5,000 jobs by 2026 as part of a strategy to reduce operating costs. The bank attributes these cuts to technological advancements and productivity improvements, particularly those enabled by artificial intelligence.

Job cuts already underway

Approximately 1,000 positions have already been eliminated, with the remaining 4,000 cuts expected to be completed by the end of the year. Around 60% of the job losses involve support functions, including IT development teams, according to Anna Cross, Barclays' chief financial officer.

Profit growth but below expectations

Barclays reported a pre-tax profit of 2.3 billion pounds for the third quarter, a 12% increase compared to the same period last year. However, this profit was lower than what analysts had predicted, largely due to a 19% drop in bond trading revenue.

Restructuring and efficiency goals

The bank’s job cuts are part of a broader effort to reduce costs through reorganization and efficiency gains from technology. However, the decision is not solely due to artificial intelligence; Barclays has been pursuing cost-cutting strategies for several years, including simplifying operations and automating tasks.

Criticism from labor unions

The restructuring has drawn criticism from the British union Unite, which argues that Barclays is using artificial intelligence as an excuse to eliminate jobs. The union’s general secretary, Sharon Graham, calls for a focus on upskilling employees rather than job cuts.

Widespread trend in the financial sector

Barclays is not alone in this approach. In February, the fintech company Block announced the elimination of over 4,000 jobs, citing productivity gains from AI. Similarly, in Australia, Commonwealth Bank has reduced its customer service workforce due to automation, showing a broader trend across the financial industry.