Barclays Cuts 5,000 Jobs to Fund AI Investment
Barclays is cutting 5,000 jobs to reduce costs and increase investment in artificial intelligence following a 12 percent rise in pre-tax profit.
Barclays announced plans to cut 5,000 jobs, approximately 5 percent of its total workforce, as part of an efficiency drive centered on artificial intelligence. The bank intends to target support functions, including developers, for about 60 percent of these reductions to simplify its organization and improve technology efficiency.
In a third-quarter earnings statement released Thursday, the bank reported a 12 percent year-on-year increase in pre-tax profit to £2.3 billion, which matched market forecasts. However, group income of £7.4 billion fell short of analyst estimates.
Barclays stated the workforce reductions are aimed at "structurally reducing the cost base to generate capacity for investment." Following the announcement, shares in the bank declined nearly 1 percent in London trading.
