Summary
- Where the Barclays job cuts will fallMost reductions hit operational and functional roles.
- The bank described the Barclays job cuts as “organisational simplification” and a gain in efficiency driven by technology and AI.
- For now, the Barclays job cuts show how banks are using AI to trim costs, and staff in support roles feel the effect first.
Barclays job cuts will reach about 5,000 by the end of 2026, as the British lender uses artificial intelligence to run with fewer people.
The bank revealed the plan with third-quarter results on Thursday. The roles equal about 5% of its staff, who numbered around 93,000 worldwide at the end of 2025.
About 1,000 posts disappeared in the first six months, and the remaining roles will follow before the year ends.
Where the Barclays job cuts will fall
Most reductions hit operational and functional roles. The earnings presentation put roughly 60% of the actions in support teams, among them developers.
The bank described the Barclays job cuts as “organisational simplification” and a gain in efficiency driven by technology and AI. It also said it was “structurally reducing the cost base” to free money for investment.
Chief executive CS Venkatakrishnan said the cuts follow years of spending on technology. That spending lets the bank use AI to make some tasks more efficient, so it needs fewer developers.
He called AI “the icing on the cake” and said it is “not the cake.” Firms must build modern infrastructure first, he explained, before they can reap the benefits. He described that investment as modernising platforms, harmonising systems and creating simpler and better processes, and he said it drives the bulk of the efficiency gains so far. AI may play a bigger role later, he added.
Savings and a three-year plan
Chief financial officer Anna Cross said the steps feed a plan that aims to save 1.1 billion pounds in 2027. She added that “AI makes our people more productive.”
The bank is close to finishing a three-year strategy built on deep cost cuts and a push into technology. In the third quarter, it booked about 200 million pounds of structural cost actions, out of roughly 600 million for the year.
That is about double what it expected to reach earlier in the year. Most of the savings came from the UK retail bank, with some from the investment bank. It plans a further 300 million pounds of savings in the final three months.
Profit rises, income misses
Pre-tax profit for the quarter rose 12% from a year ago to 2.3 billion pounds, in line with forecasts. Income came in at 7.4 billion pounds, short of the analyst estimate of 7.61 billion.
Net interest income stayed close to 3.91 billion pounds. The return on tangible equity dropped to 11.7% from 16.1%, and the bank’s solvency ratio edged down to 14.2%.
Shares fell almost 1% in early London trading after the announcement. Barclays said it is positioning itself for the future and building the skills it needs, while helping colleagues develop their careers.
The results arrive less than a week before the chancellor delivers the autumn Budget. There is talk that he may raise taxes on banks. Venkatakrishnan said his position on bank taxes is “very clear” and noted that the sector already bears a heavier burden than in other countries.
For now, the Barclays job cuts show how banks are using AI to trim costs, and staff in support roles feel the effect first.
We welcome your contributions! Submit your blogs, opinion pieces, press releases, news story pitches, and news features to opinion@minutemirror.com.pk and minutemirrormail@gmail.com
