Barclays is the latest company to cut jobs due to tech efficiencies. (Graphic: Nicola Mawson | Pexels)
London Stock Exchange-listed Barclays has become the latest company to announce job cuts as it expands its use of artificial intelligence (AI).
It joins the likes of Standard Chartered, Goldman Sachs, British American Tobacco and several technology companies.
The bank announced yesterday that its 2026 restructuring programme is expected to eliminate about 5 000 jobs, equivalent to 5% of its workforce, as it uses AI and other technological tools to reduce costs. The total includes 1 000 positions already eliminated in the first half.
The programme, outlined during its third-quarter results, is expected to deliver more than £1.1 billion (R24.3 billion) in gross efficiency savings in 2027. Around 60% of its restructuring actions relate to support functions, “including fewer developers as AI makes our people more productive”, says group finance director Anna Cross.
Cross says improved customer-facing technology has reduced call centre volumes by 10% over the past year, while technology improvements within call centres have increased staff productivity. Changes to branch staffing have also reduced employees per branch by around 10% over the same period.
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Barclays CEO CS Venkatakrishnan says third-quarter income rose 3% year-on-year to £7.4 billion (R163.7 billion), while profit before tax increased 12% to £2.3 billion (R50.9 billion). Its cost-to-income ratio improved to 62% from 63%, and earnings per share rose 18%.
Venkatakrishnan places AI within a broader technology overhaul involving standardised data, modernised infrastructure and simpler processes. “We will employ AI at scale: but AI is the icing on the cake, not the cake,” he says.
Standard Chartered announced plans in May to cut more than 7 000 corporate-function jobs by 2030 as it increases its use of AI and automation.
British American Tobacco followed in June with plans to eliminate 5 500 jobs and outsource another 3 500 roles under a broader AI-driven overhaul. Goldman Sachs had also flagged a limited reduction in roles and slower hiring in October 2025 as part of its AI programme, without disclosing a number.
While a comprehensive worldwide tally of AI-related job losses is not available, US coaching firm Challenger, Gray & Christmas says employers announced 43 281 job cuts in September, down 18% from the 52 881 announced in August. Of September’s total, 3 961 cuts cited AI.
The report, released on 1 October, shows September’s overall figure was down 20% year-on-year and was the lowest total for the month since 2022, when 29 989 job cuts were recorded.
Almost 40% of companies expect AI to reduce head count over the next year. (Source: McKinsey & Company, redrawn by GenAI)
“So far this year, AI has been cited in 120 136 job cut announcements, approximately 21% of all cuts, and it remains the leading reason year-to-date,” says Challenger, Gray & Christmas.
Employers announced 573 195 cuts across all reasons between January and September, it notes. The firm counts announced plans, including reductions that may take place over several years, rather than only completed layoffs.
In the technology sector, Layoffs.fyi’s AI tracker lists 93 217 affected employees across 116 events as having been affected so far. It explains that it counts announcements made by companies, or media reports, attributed to AI. These could involve funding AI investment, replacing humans with AI, or responding to AI-driven market disruption.
RationalFX’s full-year 2025 report shows technology companies cut 244 851 jobs globally as economic uncertainty, elevated interest rates, and growing adoption of automation and AI drove restructuring. The figures cover cuts across all causes, rather than losses attributed solely to AI.
The firm’s analysis, drawing on TrueUp, TechCrunch and US state layoff notifications, shows US-headquartered companies accounted for 69.7% of the total, shedding more than 170 000 jobs across domestic and offshore operations.
Intel accounted for the largest reduction, with plans to shrink its workforce from approximately 109 000 at the end of 2024, to around 75 000 by the end of 2025 – a reduction of roughly 34 000 positions, or 31%.
The US accounts for the bulk of layoffs at tech companies. (Source: RationalFX, redrawn by GenAI)
RationalFX attributes the chipmaker’s restructuring to declining revenue, mounting losses and increased competition. Amazon, Microsoft, Meta, Salesforce, IBM and HP also made substantial cuts during the year.
India recorded the second-highest total, with more than 19 000 jobs cut, including 12 000 announced by Tata Consultancy Services.
However, McKinsey & Company says job losses resulting from businesses’ adoption of AI have fallen short of what had been expected.
In a September release, it notes that 32% of respondents in a 2025 survey had anticipated headcount reductions due to AI over the following year, yet only 14% reported workforce reductions a year later.
“Two-thirds of respondents in 2026 reported little or no AI-related change in their organisations’ total employment during the previous year. However, 39% said they expect AI to reduce head count at their organisations over the next year,” says McKinsey & Company.