Business & FinanceBreaking NewsBreakingLatest News
Barclays to Cut 5,000 Jobs in AI-Led Cost Drive as Q3 Profit Rises 12%
Sentiment: NeutralHigh Priority
What Happened?
Barclays plans to cut about 5,000 jobs, or 5% of its workforce, this year, leveraging AI to reduce costs. This announcement comes as the bank reports a 12% increase in third-quarter profit to £2.3 billion.
Key points
- Barclays is cutting around 5,000 jobs this year as part of a cost-reduction strategy.
- The job cuts represent 5% of the bank's total workforce.
- The bank reported a third-quarter profit of £2.3 billion, a 12% increase from the previous year.
- The profit figure fell short of analysts’ expectations due to underperformance in fixed income trading.
- 60% of the job cuts will affect support functions, including developers.
- 1,000 roles have already been eliminated, with the remaining cuts expected by year-end.
Key insights
- The reliance on AI for cost-cutting may lead to further job reductions in the banking sector.
- Barclays' underperformance in fixed income trading could prompt a reevaluation of its trading strategies.
- The job cuts may signal a broader trend of automation in financial services.
Why it matters
The job cuts reflect a significant shift in how banks are leveraging technology to manage costs.
Entities
Barclays· CompanyC S Venkatakrishnan· Person
Source
Business Standard
