Barclays to cut 5,000 jobs, using AI to reduce costs

Barclays is to cut 5,000 jobs to reduce costs with the help of artificial intelligence, becoming the latest large bank to shrink its workforce as new technology permeates the banking industry. The reduction equates to about 5 per cent of the London-based bank's total headcount, with about 60 per cent of the cuts coming from support functions, including developers. The 5,000 figure includes 1,000 roles the bank has already cut in the first half. The cuts are part of efforts to control costs after Barclays reported higher-than-expected expenses earlier this year. The UK bank joins HSBC Holdings and Standard Chartered in turning to AI and automation, offering a clearer picture of how new technology is reshaping traditional banking jobs. HSBC is considering cutting up to 20,000 roles over the coming years, while Standard Chartered plans to cut more than 15 per cent of corporate function roles by 2030. There is growing evidence that AI is penetrating deeper into financial institutions. Deutsche Bank chief executive Christian Sewing said on Wednesday that the bank is using AI to improve efficiency and strengthen controls.