Barclays is cutting around 5,000 jobs. The move comes as the UK's largest bank expands its adoption of artificial intelligence (AI) to improve efficiency and cut costs. The banking group has already eliminated 1,000 positions and expects to cut another 4,000 roles by the end of 2026.
The reductions represent around 5% of its global workforce and form part of an ongoing cost-cutting programme.According to a New York Times report, the bank released a presentation this week noting that about 60% of the job cuts will affect support functions, including software developers. Barclays cited “organisational simplification and technology change efficiency” as part of its efforts to streamline operations, with AI expected to play an increasing role in its business.
What Barclays' presentation said about job cuts
In the presentation, Barclays outlined the job reductions to employees and investors after reporting its quarterly financial results. The bank said the cuts were part of a broader programme of organisational changes, technology investments, and efforts to simplify its operations.The bank's cost reductions are focused primarily on its UK retail banking business, although other divisions, including investment banking, are also affected.
Some back-office functions supporting the UK business are based in India, where the bank expects a significant share of the job cuts.Barclays is nearing the end of a three-year cost-cutting programme to improve operational efficiency. The bank expects its efficiency measures to deliver an additional £1.1 billion in savings in 2027.The bank has also said it is continuing to build its workforce and develop the skills needed to support its business strategy and changing customer needs.
Barclays CEO says AI is 'the icing on the cake'
Barclays Group chief executive C.S. Venkatakrishnan said the job cuts were part of the bank's efforts to simplify and improve its business through technology investments.Speaking to reporters, he acknowledged AI's growing role in banking but said the technology was not the only factor behind the changes.“AI has an important role to play and may have a more important role to play in the future,” Venkatakrishnan said.“We will employ AI at scale,” he said. “But AI is the icing on the cake not the cake.”He added that banks needed to build the necessary infrastructure before they could fully benefit from AI adoption.The announcement comes as financial institutions increasingly explore automation to reduce the time and resources required for routine administrative, programming and support tasks. However, employees across the sector remain concerned about how much AI will replace existing jobs.
Barclays is not the only bank cutting jobs amid AI adoption
Barclays' announcement follows similar moves by other financial institutions exploring technology-led efficiency measures. In May, Standard Chartered said it planned to eliminate more than 7,000 jobs over four years, with support functions among the affected areas.HSBC and Danske Bank have also flagged AI-related job reductions this year, highlighting the pressure on banks to assess how automation could change their workforce requirements.Russ Mould, investment director at AJ Bell, told the BBC that banks would need to weigh potential cost savings against security and customer service considerations before implementing AI more widely.Unite general secretary Sharon Graham criticised Barclays' approach, accusing the bank of using AI to justify workforce reductions.“Employers should be focussed on upgrading employees' skills so that they remain employed as new technology changes the workplace. Instead, Barclays is guilty of taking a short-term, kneejerk approach,” she said.Will Howlett, a financial analyst at Quilter Cheviot, said the reductions illustrated how automation could reshape banking operations.“Banks have spent heavily on technology for years, but we are increasingly reaching the point where that investment translates into fewer people being required to run the business,” he said.