Barclays plans to cut about 5,000 jobs citing AI-driven changes

Barclays plans to cut about 5,000 jobs, roughly 5% of staff. It cites a simpler structure and AI-driven changes to how work gets done. About 60% of the cuts, near 3,000 roles, sit in support functions, software development among them. Why cut when pretax profit rose 12% to £2.3 billion? Because the rest of the quarter was softer. Revenue of £7.4 billion missed estimates by about £210 million, and return on tangible equity fell to 11.7% from 16.1%. The simple model says AI replaces people and costs fall. The gap is that Barclays gave no savings target, no AI spending figure and no timeline. It is a receipt that lists the item but not the price. Investors will price it anyway, then ask US banks for the same line.