Barclays to cut 5,000 jobs this year as it relies more on AI and new technology
The bank says about 60 per cent of the roles going are in support functions, including software developers. It announced the cuts on the same day it reported a 12 per cent rise in quarterly profit to £2.3 billion.
Barclays is cutting about 5,000 jobs this year as it uses artificial intelligence and other technology to do more of its work with fewer staff.
That is roughly 5 per cent of the bank's workforce. Barclays announced the cuts on Thursday 22 October alongside its results for the third quarter of 2026.
About 1,000 roles went in the first half of the year. The remaining 4,000 or so are expected to go before the end of December.
Which jobs are affected
On a call with analysts, chief financial officer Anna Cross said about 60 per cent of the cuts are in support functions. She said this includes fewer software developers, because AI tools are making staff more productive.
She said the changes being made in the third and fourth quarters were "sizable". She linked them both to simplifying the organisation and to the early effects of AI.
Ms Cross also said technology for customers had cut call volumes by about 10 per cent over the past year. Changes to how branches are staffed have reduced the number of employees per branch by about 10 per cent.
Barclays has not said where in the UK, or in which offices or branches, the remaining job losses will fall. That includes its high street branches across West London.
Profit rises as costs come down
The bank reported profit before tax of £2.3 billion for the three months to the end of September, up 12 per cent on a year earlier. Income rose 3 per cent to £7.4 billion.
Barclays also announced a share buyback of up to £500 million. It said this brings shareholder payouts for the year so far to £2.8 billion.
Barclays UK, which runs the high street bank, made a return on tangible equity of 21.2 per cent in the quarter. That is a key measure of how profitable a business is.
The bank said it spent £307 million on restructuring in the first nine months of the year. It expects to spend about another £300 million by the end of December, bringing this year's total to about £600 million, roughly double its earlier estimate. The money covers job reductions, investment in technology and wider changes to how the bank operates.
Barclays expects the programme to deliver gross efficiency savings of more than £1.1 billion in 2027.
Boss plays down AI's role
Chief executive C.S. Venkatakrishnan played down how much AI has driven the cuts so far, describing it as "the icing on the cake". He said most of the gains come from years of investment in new technology platforms, merging systems and removing steps from processes.
The union Unite, which represents banking staff, strongly criticised the announcement. General secretary Sharon Graham accused Barclays of "using AI as an excuse to discard its loyal and long-suffering workforce". She said employers should focus on improving workers' skills instead.
Unite said it had opened urgent negotiations with the bank on behalf of its members.
Barclays is not the only lender to make cuts linked to AI. Other banks, including HSBC and Standard Chartered, have also announced reductions in staff numbers this year as the industry brings in more automation.