Barclays plans to eliminate approximately 5,000 jobs by the end of 2026 as the British banking group expands its use of artificial intelligence (AI) and other technologies to reduce costs and improve productivity. The cuts represent about 5% of its global workforce of approximately 93,000 employees.
The bank disclosed the reductions on October 22, alongside its third-quarter financial results. About 1,000 positions have already been eliminated, with another 4,000 expected to be cut by the end of the year, according to Chief Financial Officer Anna Cross.
Approximately 60% of the planned reductions will affect support functions, including software development roles. Barclays said its restructuring combines organisational changes with technology-driven efficiencies, allowing it to operate with fewer employees in some areas.
The bank’s leadership has described AI as part of a broader modernisation strategy rather than the sole reason for the job cuts. Chief Executive Officer C.S. Venkatakrishnan said investments in technology infrastructure and simpler processes were driving efficiency gains, with AI expected to play a growing role as the bank expands its adoption.
Barclays is targeting more than £1.1 billion in additional cost savings in 2027. The programme reflects pressure on large financial institutions to improve operating efficiency while continuing to invest in digital services, cybersecurity and technology infrastructure.
The job reductions come as Barclays reported a third-quarter pretax profit of £2.3 billion, up 12% from the same period a year earlier. However, the result fell slightly short of analysts’ expectations, partly reflecting weaker performance in fixed-income trading within its investment banking division.
The bank’s plans illustrate a growing challenge for the financial services industry: using automation to increase productivity while managing the impact on employees. AI tools can assist with coding, data processing, customer support and administrative work, potentially reducing the need for some repetitive tasks.
However, the extent to which AI directly replaces jobs varies by role and organisation. Barclays’ announcement combines technology-related efficiencies with a wider effort to simplify operations, meaning the entire reduction should not be attributed exclusively to AI.
Other major banks are also restructuring their workforces as they expand automation. Standard Chartered, for example, has announced plans to cut more than 7,000 jobs over four years as it changes its operating model and increases its use of AI.
For employees, the developments highlight the importance of adapting to changing workplace demands, particularly in roles involving routine processing and technical support. For banks, the challenge will be to turn technology investments into sustainable savings without weakening customer service, operational resilience or the specialist skills needed to manage complex financial services.
Barclays expects its restructuring and technology investments to continue shaping its operations into 2027, as competition and pressure to improve returns drive further changes across the banking industry.
