Barclays is cutting 5,000 jobs in an AI push

Barclays said it’s cutting 5,000 jobs, or around 5% of its full-time workforce, as it increases its reliance on AI.

The British bank said in its third-quarter earnings statement that it is “structurally reducing” its costs through “technology-enabled” head count reductions.

Barclays laid out the numbers in its accompanying earnings presentation, linking the cuts specifically to “organisational simplification and technology change efficiency driven by AI.” Around 60% of the cuts will impact support functions, including developers, according to the presentation.

Wall Street overall is grappling with how AI will impact head count for both back- and front-office roles, as much of junior bankers’ technical, repetitive workload can be easily automated.

Goldman Sachs said in a memo last year that it plans to “restrain head count growth,” and JPMorgan CEO Jamie Dimon has said he will likely hire fewer bankers and more “AI people.” This is a developing story.