(Image: NQ Archive)
Barclays has declined to say whether its Glasgow workforce will be affected by plans to cut around 5,000 jobs globally as the banking giant increasingly turns to artificial intelligence (AI).
When asked this morning, a spokesperson for the group did not confirm the current headcount at its flagship campus on the banks of the Clyde. In May 2024, Barclays chairman Nigel Higgins said the bank employed more than 6,000 people at the Glasgow site.
Barclays chief executive CS Venkatakrishnan, known within the business as Venkat, said the reductions form part of plans to generate more than £1.1 billion of gross efficiency savings in 2027. Around 60% of the actions relate to support functions, "including fewer developers as AI makes our people more productive".
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The Unite union reacted sharply to the announcement, accusing the bank of using AI as a justification for cutting its workforce.
"Barclays workers deserve better than this," general secretary Sharon Graham said. "The company is using AI as an excuse to discard its loyal and long-suffering workforce.
"Employers should be focussed on upgrading employees' skills so that they remain employed as new technology changes the workplace. Instead, Barclays is guilty of taking a short-term, kneejerk approach."
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Unite said it was engaging with the bank over the proposals, while arguing that technological change should be introduced alongside measures to protect skilled jobs.
Will Howlett, financials analyst at Quilter Cheviot, said the question for investors is whether Barclays can turn a smaller workforce into sustainably lower costs without compromising growth.
“Banks have spent heavily on technology for years, but we are increasingly reaching the point where that investment translates into fewer people being required to run the business," he said. "Barclays expects its efficiency measures to deliver more than £1.1bn of savings, which should help bring down costs and improve profitability."
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Responding to queries this morning, a spokesperson said: "We are positioning Barclays for the future, building the workforce and skills needed to deliver our strategy and meet the evolving needs of our customers and clients.
"In doing so we are committed to helping our colleagues develop and build rewarding careers, while meeting the changing needs of customers and clients and ensuring Barclays continues to succeed in the years ahead."
The 500,000sq ft Barclays campus in Tradeston was formally opened in October 2021 following a £330 million capital investment by the banking group. The development, on the south bank of the Clyde, brought together the bank’s technology, operations and functions teams and was billed as one of the biggest inward investments in Scotland.