Barclays to cut 5,000 jobs due to AI-driven changes

Barclays, one of the world's largest banks, announced plans to cut 5,000 jobs this year, which represents about 5% of its workforce, according to multiple iHeartRadio sources.

The bank has already made 1,000 job cuts, with the remaining reductions expected by the end of the fourth quarter, as stated in Barclays' third-quarter earnings report.

The job cuts are attributed to organizational simplification and technology efficiency driven by artificial intelligence, reflecting a broader trend of AI adoption leading to layoffs across sectors.

In addition to the broader workforce reductions, Barclays plans to eliminate over 200 positions in its investment banking division to enhance profitability, impacting roles across investment banking, global markets, and research, including senior managing directors.

Despite these cuts, Barclays is not withdrawing from any products or asset classes but aims to reallocate resources to priority areas such as European rates, equity derivatives, and securitized product trading.

A report by Challenger, Gray & Christmas highlighted that AI adoption is a significant factor in the recent surge of layoffs, with October seeing nearly triple the number of job cuts compared to the previous year.