Barclays to Cut 5,000 Jobs in Technology-Led Cost Push
Barclays plans to cut about 5% of its workforce by year-end as technology and artificial intelligence reshape operations, with support functions expected to account for most reductions.
Barclays is cutting about 5,000 jobs as it expands its use of technology, including artificial intelligence, to reduce costs. The reductions represent roughly 5% of its workforce and are expected to be completed by the end of 2026, according to Bloomberg’s October 22 report.
The programme reaches beyond customer-facing banking operations. Around 60% of the reductions will affect support functions, including developers, Chief Financial Officer Anna Cross told reporters, according to Reuters, putting technology-related roles among those exposed to the efficiency drive.
The announcement links a substantial workforce reduction to changes in how the bank operates, rather than to a decline in overall profitability. Barclays reported third-quarter pretax profit of £2.3 billion, up 12% from a year earlier, while income rose 3% to £7.4 billion, according to its results announcement.
In that announcement, Barclays described technology-enabled reductions in full-time-equivalent staff as a way to lower its underlying cost base and create room for further investment. That framing places the cuts within a broader restructuring effort: the bank is seeking to spend less on existing operations while retaining capacity to fund business growth.
The changes also carry an upfront financial cost. Barclays recorded £201 million of structural cost actions in the third quarter, compared with £93 million a year earlier, and said it planned approximately £300 million more in the fourth quarter. Those charges show that pursuing future savings requires spending before the full benefits emerge.
Artificial intelligence is part of the programme, but the available disclosures do not establish that every eliminated position is being replaced directly by AI. Bloomberg reported that Chief Executive C. S. Venkatakrishnan presented the technology as an addition to a wider modernisation strategy, a distinction that matters when assessing its role in the reductions.
The earnings backdrop was mixed despite the increase in group profit. Reuters reported that results fell short of analysts’ forecasts as fixed-income trading underperformed. Venkatakrishnan expressed disappointment with that business, pointing to a volatile quarter and weakness in rates and credit trading.
Barclays nevertheless announced a new share buyback of up to £500 million and maintained its financial targets for 2026 and 2028. The combination of shareholder distributions, investment plans and job reductions illustrates management’s effort to improve returns without abandoning spending on the bank’s future operations.
For employees, the immediate milestone is the planned completion of the workforce reductions by year-end. For the business, the longer test will be whether technology-enabled changes produce lasting savings while supporting continued investment. Barclays’ outlook remains dependent on delivering those efficiencies, with its results announcement cautioning that forward-looking targets are not guarantees of future performance.
Primary source: Bloomberg. Newzly rewrites and structures source reporting for clarity; verify critical details at the original.