Barclays to axe 5,000 jobs as profits rise to £2.3bn

Barclays is set to slash up to 5,000 jobs this year as investment in technology and greater use of artificial intelligence help the bank reduce costs.

Approximately 1,000 roles have already gone, with a further 4,000 set to go by the end of the year. The job losses represent approximately 5% of its global workforce. The announcement comes at the same time as the bank reported a 12% rise in third-quarter pre-tax profits to £2.3bn and announced a further £500m share buyback.

Reports suggest that most of the reductions affect operational and support roles, with the bulk in Barclays’ UK retail banking business, although its investment bank will also be affected. Barclays chief financial officer Anna Cross told reporters that around 60% of the actions related to support functions. The measures are part of plans to deliver more than £1.1bn in savings in 2027, according to the Guardian.

Unions reacted with anger to the cuts. Commenting on the proposed job losses, Unite general secretary Sharon Graham said: “Barclays workers deserve better than this. The company is using AI as an excuse to discard its loyal and long-suffering workforce.

“Employers should be focused on upgrading employees’ skills so that they remain employed as new technology changes the workplace. Instead, Barclays is guilty of taking a short-term, kneejerk approach. Unite is working with its members to find the best way forward to reset this destructive announcement.”

Unite says it recognises the need to embrace new technologies as industries evolve. However it says that the changes must never come at the expense of good, meaningful, skilled jobs. “The introduction of new technology must happen with workers, not to workers,” the union said.

Unite, particularly within the finance sector, has spent years establishing AI and technology agreements that protect jobs and working conditions. The frameworks ensure that jobs remain meaningful, retain human oversight, prevent algorithmic decision-making and guard against discrimination. “Technology must benefit workers, not replace them,” Unite says.

Unite national officer for finance Rick Coyle said: “Unite is engaging in urgent and frank negotiations with Barclays. We will also be offering support and guidance to our members at this difficult time. Barclays needs to put measures in place to upskill and adapt workers for new technology and that includes AI. As part of the Financial Service Skills Compact it should not be cutting jobs.”