Barclays plans 5,000 job cuts as it expands AI use
What happened
Barclays announced a restructuring program expected to eliminate about 5,000 jobs, which is equivalent to 5% of its workforce, as it expands its use of artificial intelligence and other technological tools to reduce costs. The program, outlined during its third-quarter results, is expected to deliver more than £1.1 billion in gross efficiency savings in 2027.
From itweb.co.za
Why it matters
The bank's adoption of AI is driving significant cost reductions and efficiency gains, evidenced by a 12% increase in profit before tax in the third quarter. This move is part of a broader technology overhaul within the institution.
From itweb.co.za
Who's involved
- BarclaysThe British bank implementing the restructuring and AI adoption
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- McKinsey & CompanySpeculative
McKinsey & Company might see increased demand for restructuring and digital transformation services due to the trend of AI-driven cost reduction.
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The entities involved
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Barclays
British bank
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McKinsey & Company
global management consulting firm