Barclays to axe 5,000 jobs as bank turns to AI to cut costs

The bank employed around 93,000 people at the end of last year.

About 1,000 roles were removed during the first half of 2026, with the remaining cuts taking place across the second half.

Most of the affected positions are in operational and support functions.

Barclays said greater use of technology and AI had allowed it to automate some work, reducing its need for employees in roles including software development.

Group chief executive CS Venkatakrishnan, known internally as Venkat, said the job losses were “a result of the investments which we’ve made into technology over a number of years and which we continue to make”.

The bank is approaching the end of a three-year plan aimed at improving its performance by cutting costs and expanding its technological capabilities.

Venkat said the tech investment involved “modernising our platforms and harmonising our systems and having simpler and better processes”.

“That is driving the bulk of the efficiency gains that you’ve seen so far,” he said.

“AI has an important role to play and may have a more important role to play in the future.

“I’ve often said that it is the icing on the cake – it’s not the cake – because you need to do the infrastructure build to get the benefits of AI.

“Where the infrastructure is modern, we’ve been applying it here.”

Barclays has delivered a robust set of third-quarter results, posting pre-tax profits of £2.3billion. The figure represents a 12 per cent rise compared with the same period last year.

The banking giant recorded revenue growth across several key parts of its business for the three months to the end of September.

Both its UK retail and corporate banking arms saw income climb higher. Its wealth management division and investment bank also contributed to the improved performance.

The results arrive as the lender nears the conclusion of a three-year turnaround plan focused on cutting costs and enhancing its technology infrastructure.

The bank has significantly accelerated its efficiency drive this year, achieving roughly £600million in structural cost savings. That is approximately double what had originally been anticipated.

During the third quarter alone, Barclays stripped out some £200million in costs. The majority of those reductions were made within its UK retail banking operation, though the investment bank also saw cuts.

The lender is not finished yet as a further £300million or so in savings is earmarked for the final quarter of the year.

The aggressive pace of the programme underscores how seriously the group has pursued its broader strategic overhaul to sharpen competitiveness and lift returns.

These strong figures land less than a week before Chancellor John Healey is due to deliver his autumn Budget statement. Speculation has mounted that he may look to raise taxes on banks as a means of boosting Treasury revenues.

Chief executive Venkat said he had made his stance on the matter “very clear.” Mr Venkat has previously argued that British banks already shoulder a heavier tax burden than their international counterparts.

“We are already a bank which makes a lot of our money outside the UK so this is not a question of a financial hit to us it’s bearable,” he said. “It’s a question of proportion and it’s a question of market signalling.”

Mr Venkat added: “But I deeply respect the responsibilities that the Chancellor bares and he has our full support and backing.”