Tech & AI
Barclays to cut about 5,000 jobs, roughly 5% of its workforce, as AI reduces the need for developers and support staff
About 1,000 roles have already gone and 4,000 more are due to go by the end of 2026, with around 60% of the cuts in support functions.
HedgeWeekly Tech & AI Desk ·
Barclays is cutting about 5,000 roles, around 5% of its global workforce, executives said alongside third-quarter results on October 22. About 1,000 posts have already closed and the remaining 4,000 are expected to go by the end of 2026, the BBC reported. Most of the reductions fall in the UK, largely in operations and back-office roles, though the investment bank is also affected and some of the cuts are expected in India, where Barclays runs back-office work for its UK business.
Chief financial officer Angela Cross said about 60% of the actions relate to support functions and include "fewer developers as AI makes our people more productive", according to Diginomica. Chief executive C.S. Venkatakrishnan said the savings mainly stem from earlier technology investment, calling AI "the icing on the cake" that may matter more in future. The bank said call-centre volumes fell 10% over the past year and staff numbers per branch fell by about 10%.
The cuts are the final stage of a three-year cost programme. Barclays' quarterly profit rose 12% to £2.3 billion, slightly short of forecasts, and operating expenses rose 1% to £4.6 billion, while the cost-to-income ratio, which measures costs as a share of revenue, fell to 62% from 63%. The BBC said the bank expects its efficiency measures to deliver a further £1.1 billion of savings in 2027. Diginomica noted the job cuts were not set out in the formal results statement.
Why it matters: Barclays joins HSBC, Standard Chartered, Danske Bank and ABN AMRO in tying job reductions to AI, a sign that large lenders now expect the technology to show up in cost lines rather than only in pilot projects. For shareholders, the question is whether lower headcount translates into the falling UK cost base management is targeting for 2027 and 2028, and whether severance charges dent near-term returns. Watch for detail on restructuring costs, the pace of cuts in India and the investment bank, and any change to the bank's 2026 return targets.