Barclays plans to cut around 5,000 jobs by the end of 2026 as the British lender accelerates the use of artificial intelligence (AI) to improve productivity and streamline operations.
The planned reductions represent approximately 5% of the bank’s global workforce and will affect employees across different functions, including technology and support services.
According to an earnings presentation released on Thursday, Barclays is implementing “organisational simplification and technology change efficiency driven by AI”.
“About 60% of the job losses relate to support functions, including fewer developers as AI makes our people more productive,” the bank said.
The announcement came alongside the bank’s third-quarter earnings update, which showed a 13% increase in profit after tax, reflecting stronger income from its equities business.
Barclays’ profit after tax rose to £1.65 billion ($2.2 billion) in the July-September quarter, compared with £1.46 billion recorded in the corresponding period of the previous year.
Chief Executive Officer C. S. Venkatakrishnan highlighted the bank’s “ongoing momentum of… operational and financial performance”, adding that its investment banking division “delivered strong equities performance”.
Revenue from equities surged 47% year-on-year, while total group income increased 3% to £7.37 billion during the quarter.
Despite the earnings growth, Barclays faced investor concerns over rising costs and potential regulatory and tax pressures. Its shares edged higher following the results announcement.
The planned workforce reduction highlights how financial institutions are increasingly using AI and other technological changes to improve operational efficiency, even as questions grow over the technology’s potential impact on employment.
For Barclays, the cuts form part of a broader effort to simplify its organisation and increase productivity while navigating rising operating costs and uncertainty surrounding the UK banking sector.
