Barclays revealed its latest AI transformation push on Thursday, with the lender planning to cut 5,000 jobs, about 5% of its workforce.
According to the company’s earnings presentation, about 60% of the cuts are expected to be in support functions, including developer roles, and are intended to achieve “organizational simplification and technology change efficiency driven by AI.” Barclays said it was “structurally reducing the cost base to generate capacity for investment.”
The news comes as the bank reported mixed global results, with Barclays US Consumer Bank (USCB) RoTE down to 10.9% (Q325: 13.5%) and costs up 14%.
C. S. Venkatakrishnan, Group Chief Executive, told investors: “I am pleased with the ongoing momentum of Barclays’ operational and financial performance, with RoTE of 11.7% in Q326 and 13.8% year-to-date. Income of £7.4bn is up 3% from the same quarter last year. Our cost: income ratio has improved to 62% from 63%, profit before tax grew by 12% to £2.3bn, and our earnings per share (EPS) has increased 18%. With one quarter to go before the end of our original three-year plan, we have either achieved or are on track to achieve all of our 2026 Group targets.”
“We are confident in and committed to the 2028 targets that we laid out earlier in the year. In Q326 we drove 7% year-on-year loan growth in our highest returning UK businesses1, with particular strength in UK Corporate Bank, up 14% year-on-year. The Investment Bank delivered strong Equities performance, offsetting a challenging environment for FICC. Our strong organic capital generation and common equity tier 1 (CET1) ratio of 14.2% means that we are in a position to announce a new £500m share buyback tranche today, bringing year-to-date distributions to £2.8bn, up 46% year-on-year.”
The bank’s shares fell 1% following the announcement.
By CEO NA Editorial Staff
