Why a global bank is slashing thousands of jobs - and what the Fed says about AI replacing workers

By Steve Goldstein

Barclays says it will cut 5,000 jobs by the end of the year

British bank Barclays has announced plans to cut around 5,000 jobs, or roughly five percent of its global workforce, as it leans on artificial intelligence to become more efficient.

Barclays on Thursday said it's cutting 5,000 jobs, about 5% of its workforce, as the bank relies on artificial intelligence to perform back-office tasks.

The U.K. bank told journalists on a conference call that it has already cut 1,000 jobs and will cut another 4,000 before the end of the year. Media reports said those cuts are likely to be centered in its home U.K. market.

The outplacement firm Challenger, Gray & Christmas - which tracks job-cut announcements in the U.S. -- said AI has been cited in job-cut announcements covering 120,136 positions, or 21% of all cuts. It's the leading reason, at least stated, for job cuts.

The Federal Reserve, in the October Beige Book of economic anecdotes it produces before each rate-setting meeting, said five of the 12 districts reported that some firms had either reduced staffing levels (through attrition), delayed hiring or anticipated less job creation after increasing productivity by investing in AI.

That said, the unemployment rate remains low in both the U.S. and the U.K. The U.S. jobless rate of 4.2% is still below the 50-year average, and the U.K. unemployment rate of 4.7% is the lowest since July.

Barclays (UK:BARC) (BCS) reported third-quarter pretax profit 4% below a company-compiled consensus in what UBS pinned on a miss from fixed income.

Barclays shares edged higher in London trade, but are still down 12% this year.

-Steve Goldstein

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10-22-26 0448ET