Barclays and others rethink workforce as AI efficiency gains traction

Major corporations are reevaluating their workforce strategies as the demand for artificial intelligence reshapes resource allocation. The rising cost of AI infrastructure is prompting companies to cut jobs or repurpose funds toward enhancing AI capabilities. Barclays, a U.K. bank, announced plans to reduce its workforce by 5,000 jobs, or about 5% of its staff, citing 'organisational simplification and technology change efficiency driven by AI.' Approximately 60% of the cuts will target support functions, including developers. Financial institutions, such as Norway’s DNB and Germany’s Commerzbank, have also announced job reductions alongside AI investments. Kroger, a national grocery chain, plans to lay off 3,000 corporate employees over three years as it increases AI adoption. Greg Foran, Kroger’s CEO, emphasized that 'technology is reshaping what’s possible,' urging adaptation to leverage AI for efficiency.