British bank Barclays revealed plans to cut 5,000 jobs, which accounts for about 5% of its total workforce, as part of efficiency improvement measures related to artificial intelligence.
Barclays stated in its third-quarter financial report on Thursday that the company is "structurally reducing its cost base to free up investment capacity."
According to the financial report presentation materials, approximately 60% of the layoffs are expected to occur in support functions, including among developers. The materials also point out that one of the outcomes will be "simplified organization and improved efficiency of technological changes driven by artificial intelligence."
At 8:50 a.m. London time (3:50 a.m. Eastern Time in the United States), less than an hour after trading began, Barclays' stock price fell by nearly 1%.
Barclays' pre-tax profit in the third quarter increased by 12% year-on-year to £2.3 billion ($3.1 billion), in line with the expectations compiled by LSEG. The group's revenue for the quarter was £7.4 billion, lower than analysts' estimate of £7.61 billion.
Net interest income remained relatively stable at £3.91 billion. The CET1 capital adequacy ratio, which measures financial resilience, decreased slightly from 14.3% at the end of the second quarter to 14.2%. The return on tangible equity also fell from 16.1% to 11.7%.











