Barclays plans to cut 5,000 jobs, and the coders are first in line.
The British bank says the reductions will fall mainly on developers as it rolls out artificial intelligence and tightens its cost base.
The cuts represent roughly 5% of a global workforce of 93,000. They are expected to wrap up by the end of 2026, and they arrive as part of an ongoing three-year cost program rather than as a sudden emergency move.
The numbers behind the cuts
The job reductions are not starting from zero. Barclays had already shed 1,000 positions in the first half of 2026, which leaves about 4,000 more to go.
Around 60% of the cuts will land on support functions, a category that includes developer roles.
The announcement came alongside third-quarter results. Barclays reported pre-tax profit of £2.3 billion for the quarter, up 12% year-over-year. Group income reached £7.4 billion.
But the bank fell short of some analysts’ income expectations, with fixed-income trading proving a weak spot.
The UK retail unit offered steadier news. Net interest income there rose 6% to £2 billion.
Shares dipped after the announcement.
AI is the headline, infrastructure is the story
CEO CS Venkatakrishnan acknowledged that AI plays a role in lifting productivity. But he argued that the real efficiencies come from deep investment in the bank’s technology infrastructure, not from AI on its own.
The cost targets are specific. Barclays aims for more than £1.1 billion in gross efficiency savings by 2027. It has already booked £201 million in cost reductions in the third quarter alone, with plans for another £300 million in the fourth quarter.
Much of the operational focus is on the UK retail business, where the bank sees room to run leaner.
A broader shift across Wall Street and the City
Barclays is not alone in looking at AI as a cost lever. Goldman Sachs and JPMorgan have also pursued AI-driven efficiency efforts as pressure to reduce operating costs builds across the industry.
What this means
For investors, the third-quarter profit rise shows the bank can grow earnings, but the miss on income estimates shows it cannot fully control the top line. If Barclays hits its savings goals, it can protect margins even in quarters when fixed-income desks stumble.
The initial share dip suggests the market is not yet giving Barclays full credit for the plan. Investors will likely want evidence that the £300 million fourth-quarter savings target is met, and that operations hold up as the remaining 4,000 roles are phased out.
Barclays has set itself a deadline of the end of 2026 to complete the cuts.
Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.