Barclays plans to eliminate about 5,000 jobs this year as the UK bank expands its use of artificial intelligence and pursues a broader cost-cutting programme.
The reductions will affect approximately 5% of its global workforce of 93,000 employees, the bank said on Thursday.
Executives confirmed that Barclays had already cut 1,000 jobs since the start of the year as part of its restructuring.
Chief financial officer Anna Cross told reporters that the measures formed part of a plan to save more than £1.1 billon in 2027.
“These actions involve an expected reduction of circa 5,000 full-time employees. Around 60% of the group actions relate to support functions, including fewer developers, as AI makes our people more productive.”
Chief executive CS Venkatakrishnan said the bank intended to expand AI adoption but cautioned against viewing the technology as the sole driver of its transformation.
“We will employ the AI at scale but AI is the icing on the cake not the cake,” he said.
Barclays shares were flat on Thursday following the announcement.
Restructuring costs mount as bank targets savings
Barclays has spent £307 million on its operational overhaul in the first nine months of the year and expects to incur a further £300 million in restructuring costs by the end of 2026.
The programme combines workforce reductions with technology investment and a wider review of the bank’s operations.
The move also reflects a broader trend among financial institutions seeking to use AI to improve productivity and reduce costs.
Standard Chartered, another UK-headquartered bank, announced plans earlier this year to cut more than 7,000 jobs over four years as it increases its use of AI.
The reductions would eliminate around 15% of its back-office roles by 2030.
Profit rises but misses analysts’ estimates
The job-cut announcement came alongside Barclays’ third-quarter results, which showed higher profits but fell short of market expectations.
The bank reported pre-tax profit of £2.3 billon for the three months to September, up 12% from a year earlier but below analysts’ expectations of £2.42 billon.
Revenue increased 3% year on year to £7.4 billon, also disappointing investors.
Barclays’ investment banking income was flat, with revenue from fixed-income trading falling 19% from the previous year.
The decline was partly offset by stronger performance in equities, which recorded its best quarter in more than a decade, generating £1 billon in revenue.
The bank attributed the nearly 50% increase in equities income to investment in its prime brokerage business.
Operating costs rose 6%, reflecting business growth and additional payments to high-performing employees, Barclays said.
“I am pleased with the ongoing momentum of Barclays’ operational and financial performance,” Venkatakrishnan said.
UK banks face scrutiny over profits and costs
The results arrive as UK banks face uncertainty over potential tax changes ahead of Chancellor John Healey’s first Budget next week.
Higher interest rates have supported banking profits in recent years, prompting concerns that the government could seek to increase taxes on the sector.
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