- Barclays announced plans to eliminate around 5,000 positions, equivalent to five per cent of its global workforce, by the end of 2026
- The British banking group said Artificial Intelligence (AI) is playing a central role in its ongoing modernisation strategy
- The cuts are concentrated in the UK retail banking arm, with a significant share of roles expected to fall in India
TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.
Barclays has announced it will eliminate approximately 5,000 jobs worldwide by the end of 2026, as the British banking giant accelerates its adoption of artificial intelligence across its operations.
Source: Facebook
The bank confirmed that 1,000 positions had already been closed, with a further 4,000 reductions scheduled before the close of the year. The total figure represents roughly 5% of Barclays' global workforce.
Why is Barclays cutting jobs?
According to Bloomberg, Barclays described the redundancies as part of a broader modernisation programme, with AI characterised as the "icing on the cake" of its overall strategy.
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While the bank acknowledged that not every cut is a direct consequence of new technology, the scale of the reductions reflects growing confidence among financial institutions that AI tools can absorb tasks previously handled by staff, including administrative functions and programming work.
The cost-cutting effort is primarily concentrated on the UK retail banking division, though the investment banking arm has not been spared. Several back-office roles supporting UK operations are based in India, where a considerable share of the job losses is anticipated.
How is the trend in the global banking industry?
The BBC reported that Barclays is not alone in pursuing AI-driven workforce reductions.
HSBC, Standard Chartered, and Danske Bank have all flagged similar cuts linked to the deployment of new technology this year, signalling a sector-wide shift as banks increase spending on AI platforms to streamline costs.
The announcement marks what appears to be the final phase of a three-year cost-reduction programme the bank has been working through, aimed largely at trimming expenses within its retail operations in the United Kingdom.
BBC reported the bank's comments on the role of AI in the process, noting that the scale of redundancies is expected to deepen concerns about the technology's growing displacement of workers in the financial services sector.
Which other global lender announced job cuts?
In other news, digital lender Branch International laid off employees in Kenya and Nigeria, with some workers reportedly receiving unexpected termination notices.
The company said the job cuts were not driven by financial difficulties, despite its recent profitability in African markets.
Affected employees will receive compensation equivalent to four months’ pay and retain health insurance coverage until the end of 2026.
Source: TUKO.co.ke