Barclays has announced plans to cut approximately 5,000 jobs during 2025, a move that will affect around 5% of its 93,000-strong global workforce. The reduction is part of a broader cost-saving initiative that includes expanding the use of artificial intelligence across the bank's operations.
The UK lender confirmed that it has already trimmed 1,000 positions since the start of the year as part of this restructuring. Chief Financial Officer Anna Cross told reporters that the measures are designed to deliver more than £1.1 billion in savings by 2027.
“These actions involve an expected reduction of circa 5,000 full-time employees. Around 60% of the group actions relate to support functions, including fewer developers, as AI makes our people more productive,” Cross said.
Chief Executive CS Venkatakrishnan emphasized that AI is an enhancement rather than the core driver of the transformation. “We will employ the AI at scale but AI is the icing on the cake not the cake,” he stated.
The announcement came alongside Barclays' third-quarter results, which showed a 12% increase in pre-tax profit to £2.3 billion, but this fell short of the £2.42 billion analysts had expected. Revenue rose 3% year-on-year to £7.4 billion, also disappointing investors.
Investment banking income remained flat, with fixed-income trading revenue dropping 19% from the previous year. However, equities trading delivered its strongest quarter in over a decade, generating £1 billion in revenue—a nearly 50% increase—thanks to investments in the prime brokerage business.
Operating costs climbed 6%, which Barclays attributed to business growth and higher compensation for top performers. The bank has already spent £307 million on its operational overhaul in the first nine months of the year and expects to incur an additional £300 million in restructuring costs by the end of 2026.
The job cuts reflect a wider trend among financial institutions leveraging AI to boost productivity and reduce expenses. Standard Chartered, another UK-based bank, announced earlier this year that it would cut more than 7,000 jobs over four years, eliminating around 15% of its back-office roles by 2030.
Barclays shares were flat on Thursday following the announcement. The results come as UK banks face potential tax changes ahead of Chancellor John Healey's first Budget next week, with higher interest rates having supported profits in recent years.
This article is for informational purposes only and does not constitute financial advice.
