"AI has an important role to play"
Barclays is cutting approximately 5,000 jobs as the banking group increases its use of artificial intelligence (AI) and continues a major cost-cutting programme.
The bank said 1,000 positions had already been closed, with a further 4,000 expected to be cut by the end of 2026. The reductions represent around 5% of its global workforce.
Although the cost-cutting measures primarily target Barclays’ UK retail banking business, some back-office functions supporting its UK operations are based in India, where a significant proportion of the job losses are expected to fall.
Barclays said the reductions form part of an ongoing modernisation strategy, with AI supporting wider efforts to simplify operations and improve efficiency.
The bank is approaching the end of a three-year cost-cutting programme focused mainly on its UK retail division, although its investment banking business is also affected.
Group chief executive CS Venkatakrishnan said:
“AI has an important role to play and may have a more important role to play in the future.
“We will employ the AI at scale. But AI is the icing on the cake not the cake.
“Because you need to do the infrastructure build to get the benefits of AI.”
Barclays said around 60% of the job cuts would affect support functions, including developer roles, as it continues to streamline its operations.
The announcement comes as economists examine company results for evidence that investment in new technology, particularly AI, is improving efficiency and reducing the need for workers.
Russ Mould, investment director at AJ Bell, said Barclays was “reaching for the AI lever, expecting to cut a decent chunk of its workforce as it expands the use of artificial intelligence”, but had failed to match expectations with its financial results.
Despite the planned job reductions, Barclays reported a profit of £2.3 billion for the three months to September 2026.
This was higher than the figure recorded during the same period a year earlier, although slightly below forecasts.
Will Howlett, financial analyst at Quilter Cheviot, said the cuts illustrated “how significantly AI and automation could reshape the banking industry over the next few years”.
He added: “Banks have spent heavily on technology for years, but we are increasingly reaching the point where that investment translates into fewer people being required to run the business.”
Barclays expects its efficiency measures to deliver a further £1.1 billion in savings during 2027, as it continues to invest in technology and reduce operating costs.
