Barclays Shifts Spending to AI as it Cuts Jobs

WHO:

Fortune - Goldman Sachs CEO David Solomon said most economic activity does not require frontier AI models, while identifying cybersecurity, defense, and health care—including drug discovery and molecule formation—as areas where they matter.

Fortune - Small-business owners Allison Dunn of Hibiscus Brew and Hagan Walker of Glo Pals described using AI to support their businesses; Walker said the company is hiring and seeks candidates familiar with AI tools.

Fast Company - Norway’s DNB and Germany’s Commerzbank have also announced job cuts alongside pushes into AI.

Newsweek - Barclays is the company involved in a recent job-cut announcement.

ABC News Business - Barclays is described as the latest major company to redirect spending toward artificial intelligence while trimming its workforce.

ABC News Business - Major companies are changing how they allocate resources.

WHAT:

Fortune - Nearly 20,000 entrepreneurs have completed Goldman Sachs’ 10,000 Small Businesses program since it launched in 2010; small businesses make up 99% of U.S. businesses.

Fortune - Among program graduates using AI, 86% use chatbots such as ChatGPT, Claude, or Gemini; 54% use AI features built into existing software; and 18% use agentic AI.

Fortune - Graduates using AI reported using saved time for strategic planning (56%), expanded marketing (44%), and developing new products or services (31%).

Fortune - Dunn said AI sorts her email, organizes tasks, helps plan her café menu, and supports inventory management. Walker said an AI agent selects shipping-box sizes and analyzes advertising data.

Fortune - Goldman Sachs announced a $500 million commitment to its 10,000 Small Businesses program and launched the Small Business AI Institute.

Fortune - Anthropic will create applied-AI learning resources and workshops; Google will offer its AI Professional certificate and three months of free Google AI Pro access; Meta will provide AI tools and training; OpenAI will run workshops through community-college partners.

Fortune - A Babson College survey found 86% of Goldman program graduates used AI in their businesses, up from 56% in 2024; 15% said AI was fully integrated into core operations, and 77% wanted more training and resources.

Fortune - Among AI-using graduates, 84% reported no workforce change, 5% added positions, and 6% cut staff. Also, 73% spent less than $100 monthly on AI, including 16% who used only free tools.

Fast Company - Barclays’ quarterly financial report said it is looking to cut 5,000 jobs, about 5% of its workforce; approximately 60% of the cuts are in support functions, including developer roles.

Fast Company - Kroger said it will lay off 3,000 corporate employees over three years. The company has 409,000 employees and more than 2,700 stores.

Fast Company - Meta said it would lay off about 8,000 workers, or 10% of its workforce, and leave about 6,000 positions unfilled. Its projected 2026 expenses could reach $169 billion.

Fast Company - Microsoft planned voluntary buyout offers for about 8,750 U.S. employees, or 7% of its U.S. workforce.

Fast Company - Standard Chartered plans to cut more than 15% of its back-office employees by 2030.

Fast Company - Coinbase is cutting approximately 14% of its workforce; CEO Brian Armstrong said AI lets engineers complete in days work that previously took teams weeks.

Fast Company - Pinterest planned layoffs affecting under 15% of its workforce; Snap is eliminating about 16% of its global workforce, or about 1,000 jobs, and will leave 300 open roles unfilled.

Fast Company - Block is laying off more than 4,000 of its 10,000-plus employees. Jack Dorsey said a smaller team using the company’s tools can “do more and do it better”; Block shares were up 19% this year after declining 12% the previous year.

Inc - 96 percent of financial institutions expect their budgets for AI fraud technology to increase over the next two years.

Newsweek - Barclays announced job cuts, prompting renewed concern about AI-driven job losses in the banking industry.

ABC News Business - Barclays is redirecting spending toward AI while reducing its workforce.

WHERE:

Fortune - Goldman Sachs announced the institute at its headquarters in lower Manhattan.

WHY:

Fortune - Goldman Sachs said the institute would provide small businesses with AI education, access to capital, and support services.

Fast Company - Barclays cited “organizational simplification and technology change efficiency driven by AI” as the reason for its planned cuts.

Inc - Banks expect an AI-driven surge in fraud, described as a “Napster moment.”

Newsweek - The job-cut announcement raised concern that AI could cause widespread job losses in banking.

ABC News Business - The cost of building the infrastructure needed to meet booming demand for AI is changing how major companies allocate resources.

HOW:

Fortune - Solomon said small businesses should evaluate AI through return on investment and productivity, adding: “The important thing is to get it right, not to get it quicker.”

ABC News Business - Companies are shifting spending toward AI infrastructure as they respond to increasing demand for AI.

(UPDATED October 24, 2026 14:04 UTC)

Barclays plans to cut 5,000 jobs, about 5% of its workforce, citing organizational simplification and efficiencies driven by AI, as it redirects spending toward the technology. The move adds to a wider wave of workforce reductions at companies including Meta, Microsoft, Coinbase, and Block. At the same time, Goldman Sachs is committing $500 million to support small businesses and has launched a Small Business AI Institute. Its partners will offer training, workshops, and tools, responding to growing demand: 86% of surveyed program graduates now use AI, up from 56% in 2024. Business owners say AI helps with tasks such as email, inventory, shipping, and advertising, while many want more training. Goldman CEO David Solomon says businesses should judge AI by productivity and return on investment, noting that frontier models are most important in fields such as health care, defense, and cybersecurity. Banks also expect rising investment in AI fraud technology.

(UPDATED October 24, 2026 04:04 UTC)

Barclays plans to cut 5,000 jobs, about 5 percent of its workforce, while shifting spending toward artificial intelligence. The bank says roughly 60 percent of the cuts will affect support roles, including developers, as it pursues organizational simplification and technology efficiencies. The move reflects a broader pattern: Meta, Microsoft, Kroger, Coinbase, Pinterest, Snap, Block and Standard Chartered have also announced workforce reductions or buyouts. Some companies cite AI as a way for smaller teams to do more, while banks are preparing for a potential surge in AI-enabled fraud. At the same time, Goldman Sachs is committing $500 million to its small-business program and launching an AI institute in lower Manhattan. Partners including Anthropic, Google, Meta and OpenAI will provide training and tools. A survey found most participating business owners using AI want more training, though most report no staffing changes.

(UPDATED October 23, 2026 20:08 UTC)

Barclays plans to cut 5,000 jobs, about 5% of its workforce, as it redirects spending toward artificial intelligence. The bank says the reductions reflect organizational simplification and efficiency gains from technology changes, with roughly 60% affecting support roles, including developers. The announcement has renewed concerns about AI-driven job losses in banking, even as financial institutions prepare for AI-related fraud: 96% expect to increase fraud-technology budgets over the next two years. Barclays is part of a broader wave of companies reshaping their workforces and spending as they invest in AI infrastructure. Meta plans to cut about 8,000 jobs and leave 6,000 roles unfilled, while Coinbase is reducing staff by around 14%. Block is eliminating more than 4,000 jobs, and Snap about 1,000. Kroger, Microsoft, Standard Chartered, and Pinterest have also announced workforce reductions or buyouts.

(UPDATED October 23, 2026 19:10 UTC)

Barclays is cutting jobs as it shifts more spending toward artificial intelligence, renewing concerns that AI could drive widespread job losses in banking. The move reflects a broader change in how major companies allocate resources, as demand for AI grows and the infrastructure needed to support it becomes more costly. At the same time, financial institutions are preparing for AI to reshape fraud. Ninety-six percent expect their budgets for AI fraud technology to increase over the next two years. Banks anticipate a surge in AI-driven fraud, with some describing the moment as a “Napster moment.” That prospect is prompting investment in tools to detect and counter fraud, even as companies direct resources toward building AI infrastructure. Barclays is the latest major company to make that trade-off, reducing its workforce while increasing its focus on AI.

(UPDATED October 23, 2026 18:24 UTC)

Barclays has announced job cuts as it redirects spending toward artificial intelligence, making it the latest major company to trim its workforce while investing in AI. The announcement has renewed concern about the technology’s potential to cause widespread job losses across the banking industry. Barclays’ move reflects a broader shift in how major companies allocate resources. Demand for AI is booming, and meeting it requires costly infrastructure. Companies are steering more spending toward building that infrastructure as they respond to rising demand. That investment is reshaping corporate budgets, even as businesses reduce their workforces. For bank employees, the cuts raise questions about how AI will affect jobs across the sector. The announcement highlights the tension between expanding AI capabilities and preserving existing roles.