Barclays has said it will cut around 5,000 jobs this year, equivalent to about 5 per cent of its workforce, as it uses technology, including artificial intelligence, to reduce fixed costs and improve returns. The bank revealed the cuts alongside its third-quarter results on 22 October 2026.

Results behind the cuts

Around 1,000 of the roles have already gone, with the remainder due to be cut by the end of the year, according to the bank's chief financial officer, Anna Cross. Around 60 per cent of the overall cuts will affect staff in support functions, including developers, in one of the clearest signs yet from a major bank of how AI is changing headcount in such roles. The reductions are subject to consultation with employees where required.

What it means for bank workers

The cuts form part of a longer-term cost plan; the bank took £201 million in structural cost actions in the quarter and expects over £1.1 billion of gross savings in 2027.

Barclays reported third-quarter pre-tax profit of £2.3 billion, up 12 per cent on a year earlier, although the figure undershot analysts' forecasts as its fixed income trading business underperformed. Group income rose 3 per cent to £7.4 billion, below the £7.61 billion analysts had expected.

Chief executive C.S. Venkatakrishnan blamed a volatile quarter and weak rates and credit trading for the fixed income result.

Barclays stressed that years of technology investment, not AI alone, sit behind the drive, with AI playing a supporting role. Venkatakrishnan described AI as the icing on the cake, not the cake, because the bank first had to modernise its data and systems.

Sources: Reuters via SRN News and The Wall Street Journal.