LONDON, United Kingdom – British banking giant Barclays plans to eliminate approximately 5,000 jobs by the end of 2026 as it expands the use of artificial intelligence (AI) and technology to reduce operating costs, a restructuring that will affect about five per cent of its global workforce.
The bank disclosed the reductions on Thursday, October 22, alongside its third-quarter financial results, which showed pre-tax profits rising 12 per cent year-on-year to £2.3 billion.
About 1,000 positions have already been eliminated, with another 4,000 expected to go before the end of December, according to the bank’s management.
The cuts are expected to fall mainly on operational and support functions, including technology-related roles, as Barclays simplifies its operations and seeks greater productivity from investments in automation and AI.
The announcement highlights a growing tension in the banking industry: financial institutions are investing heavily in technology to improve efficiency, but those investments are also changing the types and number of employees they need.
AI increasingly influences banking jobs
Barclays Chief Executive C.S. Venkatakrishnan said the job reductions reflected investments in technology made over several years, adding that AI would become increasingly important as the bank modernised its systems.
“AI has an important role to play and may have a more important role to play in the future,” he said.
He described AI as “the icing on the cake” rather than the foundation of the efficiency programme, arguing that modern infrastructure and improved systems were necessary to realise the technology’s benefits.
The bank said approximately 60 per cent of the planned job reductions would affect support functions, including software developers, as AI and other technological improvements enable some tasks to be performed more efficiently.
The restructuring forms part of a broader effort to simplify Barclays’ operations, reduce fixed costs and free up resources for investment.
The bank has also been consolidating systems and modernising its technology platforms, meaning the planned reductions cannot be attributed to AI alone.
Profits rise as trading performance disappoints
The job-cut announcement came as Barclays reported pre-tax profits of £2.3 billion for the three months ending September 2026, up from approximately £2.08 billion a year earlier.
However, the result fell short of analysts’ expectations, largely because of weaker performance in fixed-income trading.
The bank’s equities trading business delivered stronger results, with income increasing 47 per cent year-on-year to about £1 billion. By contrast, income from fixed-income, currencies and commodities trading fell 19 per cent to approximately £1 billion.
The mixed performance in its investment banking division weighed on the overall results, despite growth in other parts of the business.
Barclays also announced a £500 million share buyback, although the move did not entirely offset investor disappointment over the quarterly performance.
Cost-cutting drive gathers pace
Barclays recorded approximately £201 million in structural cost reductions during the third quarter and said it planned further savings of around £300 million in the final quarter of the year.
The measures are part of a wider strategy to improve profitability while continuing to invest in technology and its banking operations.
Most of the workforce reductions are expected to affect the bank’s UK operations, although the programme will have a global reach.
Barclays has said it remains committed to helping employees develop their skills and pursue careers within the organisation as the requirements of its business evolve.
A spokesperson said the bank was building the workforce and capabilities needed to deliver its strategy while responding to changing customer needs.
Banking industry faces growing AI pressure
Barclays’ plans reflect a wider debate about how AI could reshape employment in financial services, particularly in areas involving routine processing, operational support and software development.
In May 2026, Standard Chartered Chief Executive Bill Winters drew attention to the issue when he discussed replacing what he described as “lower-value human capital” with AI. His comments came amid plans for substantial workforce reductions at the bank.
For Barclays, the immediate objective is to reduce costs and improve returns while continuing to modernise its systems.
The longer-term question is how far AI will change the composition of banking work as institutions expand automation and seek to improve productivity.
The latest announcement provides a concrete indication of the workforce impact already accompanying that transition, with thousands of positions scheduled to disappear before the end of the year.
