Barclays to cut 5,000 jobs in AI-powered cost-cutting drive
BCS•Barclays said it would cut around 5,000 jobs, or 5% of its workforce, this year as it uses technology such as AI to reduce costs. Third-quarter pretax profit rose to £2.3 billion from £2.1 billion a year earlier, but missed forecasts as fixed income trading underperformed.
1. Job cuts and earnings
Barclays said it would cut around 5,000 jobs this year as it uses technology such as AI to reduce fixed costs. About 60% of the cuts will affect support functions, including developers; 1,000 roles have already gone, with the rest due by year-end. Third-quarter pretax profit was £2.3 billion, up from £2.1 billion a year earlier but below analysts’ forecasts.
2. Trading performance
The investment bank reported third-quarter income of £3.1 billion, below forecasts of £3.3 billion. Fixed income trading income fell 19% to £1 billion, while equities revenue rose 47%. CEO C.S. Venkatakrishnan said he was disappointed by fixed income trading, citing a volatile quarter and weak trading in rates and credit products.
3. Shares and budget
Barclays shares fell 2.5% in early trading. The bank took a further £201 million in structural cost actions during the quarter. British banks’ results may be overshadowed by the finance minister’s October 28 budget, where further taxes on banks may be levied.
