Barclays to Cut 5,000 Jobs as AI Drives Cost Savings
The British bank plans to eliminate 5% of its workforce, with support functions and software developers among the hardest hit.
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British bank Barclays plans to cut around 5,000 jobs, or 5% of its global workforce, by the end of 2026 as investments in artificial intelligence and automation help it reduce costs.
A significant share of the reductions may affect back-office operations in India.
The bank has already eliminated about 1,000 positions, with another 4,000 expected to go by December. Around 60% of the cuts will affect support functions, including software developers.
Chief Executive C.S. Venkatakrishnan attributed the reductions largely to years of investment in technology and simpler processes, describing AI as the “icing on the cake” rather than the main driver of efficiency gains.
The announcement came as Barclays reported a 12% rise in third-quarter pretax profit to £2.3 billion, below analysts’ expectations following weaker fixed-income trading.
“These results give us a strong foundation as we position Barclays for the future, building sustainably higher returns to 2028 and beyond,” Venkatakrishnan posted on LinkedIn.
Barclays expects its efficiency measures to generate more than £1.1 billion in savings in 2027.
Other banks are also cutting jobs as they invest in automation. National Australia Bank has outlined plans to eliminate 2,500 positions, while HSBC and Standard Chartered have also examined the potential impact of AI on staffing.
The cuts have drawn criticism from labor unions. Unite general secretary Sharon Graham accused Barclays of using AI “as an excuse to discard its loyal and long-suffering workforce,” calling for greater investment in retraining employees.
