Barclays announced it will cut 5,000 roles, about 5% of its workforce, with 60% of the reductions in support functions, as it uses AI to lower costs. It is the latest bank after HSBC and Standard Chartered to reduce headcount as AI penetrates the banking industry. The CEO said the bank will apply AI at scale, but that AI is "icing on the cake."
Barclays published a report on September 22 introducing the Barclays 3A Framework, which uses skills as the core analytical unit and draws on a U.S. Department of Labor database of 104 skills to assess how cognitive and physical AI affect more than 830 occupations. The report says only about 20% of core workplace skills are highly replicable by AI, automation exposure is concentrated in a few occupations, while amplification effects are broader, and job data shows AI skill demand is spreading from tech roles into management positions.