A major global bank is slashing 5000 jobs as it expands artificial intelligence across the business.
The announcement by UK-based Barclays on Thursday (Friday AEDT) came as the Australian banking sector continues to bleed more workers.
UK bank Barclays has announced its laying off 5000 workers. AP
The 335-year-old British lender says 1000 positions had already been axed and it expects a further reduction of 4000 to be finalised by the end of this year, reports the BBC.
The figure is equivalent to 5 per cent of its worldwide workforce.
Barclays Group chief executive CS Venkatakrishnan said major investement in technology to simplify its business meant the company required less workers.
“We will employ the AI at scale,” he said. “But AI is the icing on the cake, not the cake.”
Meanwhile, a second major bank in Australia has announced it is axing hundreds of positions as a technological shake-up results in jobs heading overseas.
Westpac will cut hundreds of jobs, but will offer support to those impacted. Lisa Maree Williams/Getty Images
Westpac announced on Thursday it would slash about 250 jobs this month, with 140 being cut this week alone.
The company said an AI overhaul was not behind the job losses.
“The shape of our workforce changes according to the investment priorities of the group. While we continue to invest in extra bankers, digital delivery and customer-facing roles, other programs may be completing or require fewer resources,” a Westpac spokesperson told nine.com.au.
“This means from time to time we make changes that may impact some roles and responsibilities as we actively manage costs and investment. As customer habits change, and the skills and capabilities required in banking continue to evolve, so will our workforce.”
Westpac said it would offer support and assistance to staff who would be made redundant.
It comes the same week NAB announced plans to axe 2500 jobs as the bank tried to battle “more challenging economic conditions.”
Since the start of the year, NAB has slashed 400 jobs, while ANZ cut about 100 jobs in New Zealand in September.