Barclays to cut about 5,000 jobs by end of 2026 in AI efficiency drive
- Barclays plans to cut roughly 5,000 jobs, about five per cent of its global workforce, by the end of 2026.
- The bank says about 60 per cent of the losses fall on support roles, including fewer developers as AI boosts productivity.
- The cuts came with third-quarter results showing profit after tax up 13 per cent to £1.65 billion.
Barclays will cut about 5,000 jobs by the end of 2026, roughly five per cent of its global workforce, the British bank said on Thursday as it leans harder on artificial intelligence to cut costs.
The bank said about 1,000 of those roles have already gone, with a further 4,000 expected to follow by the end of the year, according to BusinessDay. Its workforce stood at around 93,000 at the end of 2025.
In its earnings presentation, Barclays described the move as "organisational simplification and technology change efficiency driven by AI". About 60 per cent of the losses will hit support functions, including fewer software developers as AI tools make staff more productive.
The cuts are part of a wider cost-reduction programme centred largely on Barclays' UK retail banking arm, though its investment banking business will also be affected. Some back-office work supporting UK operations is based in India, where a significant share of the losses is expected.
Profit up, but income misses forecasts
The announcement came with third-quarter results. Profit after tax rose 13 per cent to £1.65 billion (about $2.2 billion) from £1.46 billion a year earlier, helped by a 47 per cent jump in equities revenue. Total group income climbed three per cent to £7.37 billion.
BusinessDay reported pre-tax profit of about £2.3 billion, up from roughly £2.1 billion a year earlier, but said quarterly income fell short of analysts' expectations. Barclays also announced a further £500 million for shareholders, taking total payouts through dividends and buybacks since January to about £2.8 billion.
Chief executive C. S. Venkatakrishnan pointed to "ongoing momentum of… operational and financial performance" and said the investment bank "delivered strong equities performance". He said the efficiency gains reflected years of spending on technology and simpler processes, and described AI as an important part of the strategy rather than the only reason for the restructuring.
AJ Bell investment director Russ Mould said the results fell short of expectations and the buyback did not fully ease investors' disappointment. He flagged two concerns: an expected rise in tax on the sector in next week's UK budget, and a reported probe into possible misrepresentation of risks in Barclays' private credit portfolio.
Barclays expects its efficiency measures to generate more than £1.1 billion in extra savings in 2027. Standard Chartered has also outlined plans to cut more than 7,000 roles over four years as it expands its use of AI.
What happens next
The remaining cuts are expected to be completed by the end of 2026. For Nigerian readers, the story matters mostly as a signal: banks worldwide are using automation to shrink back-office and tech teams, a trend that could shape hiring at lenders and fintechs operating in Nigeria too.
