British lender Barclays has revealed plans to cut 5,000 jobs — about 5% of its total workforce — as part of an artificial intelligence-linked efficiency push.
In its third-quarter earnings statement Thursday, Barclays said it was “structurally reducing the cost base to generate capacity for investment.”
About 60% of the cuts are expected to be in support functions, including developers, according to the earnings presentation, which also noted an outcome was “organisational simplification and technology change efficiency driven by AI.”
Shares in the bank were almost 1% lower by 8:50 a.m. in London (3:50 a.m. E.T.), less than an hour into the trading day.
Barclays’ third-quarter pre-tax profit rose 12% year on year to £2.3 billion ($3.1 billion), matching LSEG-compiled forecasts. Group income for the period was £7.4 billion, below analysts’ estimate of £7.61 billion.
Barclays.
Net interest income was broadly unchanged at £3.91 billion. Its CET1 capital ratio, a measure of financial solvency, edged down to 14.2% from 14.3% at the end of the second quarter. Return on tangible equity fell to 11.7% from 16.1%.