A faster pace of cuts

NatWest Group has cut 1,000 jobs over the past three months as the banking giant accelerates its adoption of artificial intelligence, bringing total workforce reductions to 1,400 so far in 2026. The latest cuts mark a sharp acceleration in the bank's restructuring programme, with most of this year's reductions taking place in the third quarter.

Chief executive Paul Thwaite has confirmed that AI is reshaping roles across NatWest. Its AI-powered customer service assistant, Cora, has handled 52,000 credit card-related customer issues, an example the bank points to as AI takes on work previously done by staff in customer support, administration and other functions where repetitive tasks can be automated.

Savings, but headcount still up overall

NatWest said the programme had already delivered approximately £420 million in cost savings, helping reduce the proportion of revenue consumed by operating expenses. The bank reported quarterly pre-tax operating profits of about £2.2 billion in the three months to September, an increase of about 2% on the same period last year, according to London Business News coverage of the results.

The restructuring has coincided with expansion elsewhere in the business. NatWest's acquisition of wealth manager Evelyn Partners added approximately 2,200 employees, pushing overall headcount higher despite the redundancy programme. That contrast captures the shape of modern bank restructuring: fewer roles in traditional operations, more in wealth management and technology.

A sector-wide pattern

NatWest is not alone. Barclays recently outlined plans to cut approximately 5,000 jobs during 2026, with artificial intelligence expected to play a significant role, while HSBC is reportedly planning substantial reductions in its UK financial advisory operations as it introduces AI-driven services. Standard Chartered has previously announced thousands of redundancies as part of its own restructuring.

The cuts come shortly after the Budget announced the bank corporation tax surcharge will double from 3% to 6% for 15 months from January 2027. For staff, the question is whether this wave is a one-off efficiency drive or a longer shift in what bank jobs look like.

Sources: London Business News | Share-Talk