Barclays to cut 5,000 jobs by 2026, focusing on AI integration

Barclays announced it will cut around 5,000 jobs – about 5% of its global workforce – by the end of 2026, with 1,000 positions already eliminated. The layoffs are part of a broader push to embed artificial intelligence across the bank’s operations, the group said on Thursday. The cuts will be completed by year‑end and are focused mainly on its UK retail arm, though a sizable share will affect back‑office roles based in India.

The job reductions follow a three‑year cost‑cutting programme that Barclays began to modernise its business. The bank described AI as “the icing on the cake” of its strategy, signalling that technology upgrades are driving the latest round of cuts. Industry peers such as HSBC, Standard Chartered and Danske Bank have flagged similar AI‑related redundancies this year, underscoring a sector‑wide shift toward automation. Analysts note that banks are still cautious about rolling out AI at scale, weighing security and customer‑service risks. Union leaders, however, accuse Barclays of using AI as a pretext to shed staff, arguing that the firm should invest in retraining rather than resort to “a short‑term, knee‑jerk approach.”

Barclays said roughly 60% of the jobs will be in support functions, including developers, and many will be in its UK retail division and overseas processing centres. The bank reported a £2.3 billion profit for the three months to September, slightly below forecasts but higher than a year earlier. CEO CS Venkatakrishnan said the cuts are necessary to fund the infrastructure needed for AI, which he expects to play an increasingly important role. Financial analysts will watch upcoming earnings releases to see whether other banks follow suit and how the workforce adjustments affect service quality and cost efficiency. The next few months will reveal whether Barclays’ AI‑driven overhaul delivers the promised savings or sparks further debate over technology’s impact on employment.