British bank Barclays plans to cut 5,000 jobs this year as it rolls out AI across the organization. [Getty Images]
British bank Barclays plans to cut 5,000 jobs this year as it rolls out AI across the organization. [Getty Images]

British bank Barclays will cut 5,000 jobs this year as it rolls out AI across the organization, citing productivity gains from the technology as the driving force behind the reductions — a development that gives concrete form to longstanding fears that AI will displace human workers.

According to the Financial Times, Barclays announced the cuts on Thursday (local time), saying the reductions would amount to roughly 5 percent of its total workforce, with support functions expected to bear the brunt.

The bank described the plan as "part of a broader cost-reduction program," adding that AI "is increasing employee productivity" as the key reason behind the move.

About 60 percent of the job cuts are expected to come from support divisions, with technology and developer roles also set to be significantly affected. Barclays had already cut 1,000 positions earlier this year as part of a restructuring that included workforce reductions, technology investment and a broader operational overhaul. The bank said it spent 307 million pounds ($392 million) on restructuring between January and September, and expects to spend an additional 300 million pounds on restructuring costs by year-end.

The cuts are being seen as a real-world illustration of fears that AI will replace human jobs. HSBC, another global financial institution, was also reported earlier this month to be pursuing large-scale layoffs as it draws up plans to deploy AI in its wealth management business serving affluent customers.

Barclays CEO C.S. Venkatakrishnan pushed back on the more alarming interpretation, saying the bank would "use AI at scale, but AI is the icing on the cake, not the cake itself" — a remark widely read as framing AI as a tool for boosting efficiency and productivity rather than a replacement for human workers.


kate01@heraldcorp.com