Barclays Plans 5,000 Job Cuts Amid AI Push Despite 12% Q3 Profit Growth
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Khushi Jain
- October 23, 2026
Barclays plans to cut around 5,000 jobs this year, representing approximately 5% of its workforce, as the British bank looks to increase profitability and reduce fixed costs through technology and artificial intelligence (AI).
The announcement came as Barclays reported a third-quarter profit of $3.08 billion, up 12% year-on-year. However, the result fell short of analysts’ expectations, primarily due to weaker performance in the bank’s fixed income trading division.
Barclays CEO C S Venkatakrishnan expressed disappointment with the performance of the traditional fixed income business and said the bank would take steps to address the issue.
Barclays Layoffs and Future Plans
Chief Financial Officer Anna Cross said nearly 60% of the planned job cuts would affect support functions, including developers.
The bank has already eliminated approximately 1,000 positions, with the remaining job cuts expected to be completed by the end of the year.
The planned reductions reflect a broader trend among large banks to automate non-frontline functions and reduce staffing requirements through artificial intelligence and other technologies.
Barclays continues to invest in technology as part of its efforts to improve productivity and streamline operations, even as it reduces its workforce. The bank said its cost-cutting initiatives are aimed at improving long-term returns through a more efficient corporate structure.
Weak Fixed Income Trading Weighs on Quarterly Performance
Barclays’ fixed income business weighed on its otherwise improved quarterly profit, highlighting continued challenges in its core trading operations during the third quarter.
The bank attributed the weak trading performance to a volatile quarter and limited interest in rates and credit products.
As part of its longer-term efforts to reduce expenses, particularly employee costs, through greater use of technology, Barclays recorded an additional USD 269.3 million in “structural cost actions” during the third quarter.
Banks Increase Focus on AI and Automation
Financial institutions globally are reorganising their operations in response to rising costs and pressure on profits. Many are increasing their use of AI and automation to improve efficiency and reduce the need for manual work.
Companies are investing more in AI, expecting the technology to handle routine tasks traditionally performed by employees, including programming and administrative duties.
Danske Bank, HSBC and Standard Chartered have also announced layoffs linked to artificial intelligence, according to the source.
Analysts have suggested that banks may initially assess AI’s implications for security and customer service before deploying it more widely to reduce costs, as the sector has yet to take significant steps towards broad AI adoption.
Barclays expects its efficiency initiatives to generate an additional £1.1 billion in savings by 2027.
FAQs
1. How many jobs does Barclays plan to cut this year?
Barclays plans to eliminate around 5,000 jobs, equivalent to approximately 5% of its workforce.
2. Why is Barclays reducing its workforce?
The bank aims to increase profitability and reduce fixed costs through technology, artificial intelligence and automation.
3. What was Barclays’ third-quarter profit?
Barclays reported a third-quarter profit of $3.08 billion, up 12% year-on-year.
4. Which roles will be affected by the planned layoffs?
According to CFO Anna Cross, nearly 60% of the planned job cuts will affect support functions, including developers.
5. How much does Barclays expect to save by 2027?
Barclays expects its efficiency initiatives to generate an additional £1.1 billion in savings by 2027.
