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London, Oktober 26, 2026 – Barclays has announced plans to eliminate 5,000 jobs, roughly 5% of its global workforce, as part of a sweeping effort to reduce costs through artificial intelligence.
The decision comes after the British lender reported weaker than expected third quarter earnings, underscoring the mounting pressure on banks to adapt to shifting market conditions and rising expenses.
Chief Executive C.S. Venkatakrishnan said the restructuring would lean heavily on AI to streamline operations, though he cautioned that technology was “the icing on the cake, not the cake.”
About 60% of the cuts will affect support functions, including developers, reflecting the bank’s push to automate routine tasks.
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Barclays employed 93,000 people worldwide at the end of 2025.
The bank trimmed £201 million in costs during the third quarter and aims to cut another £300 million in the final quarter of the year.
Venkatakrishnan stressed that the savings would be “structural,” designed to free up capital for investment while keeping Barclays competitive in a challenging environment.
Financial results highlighted the strain. Fixed income and currency trading revenue fell 19% year on year to £1.01 billion, missing analyst forecasts.
Equities trading, however, surged 47%, nearly matching fixed income revenue and marking the strongest performance since Barclays acquired Lehman Brothers’ North American unit in 2009.
Retail banking in the UK remained stable, while the U.S. consumer arm was flat, both falling short of expectations.
Despite the earnings miss, Barclays announced a £500 million share buyback, signaling confidence in its long-term trajectory.
Still, shares dropped 2.4% in London trading following the announcement, as investors weighed the balance between cost discipline and growth prospects.
The broader industry is facing similar headwinds.
JPMorgan, Goldman Sachs, and Bank of America all reported declines of up to 17% in fixed income revenue, reflecting the impact of higher interest rates and subdued client activity.
Barclays also warned of “further adversity in September” due to global economic pressures.
Looking ahead, the bank remains committed to its 2026 and 2028 targets, even as UK lenders brace for potential tax hikes under Labour’s upcoming budget.
The cuts highlight a broader trend: AI is reshaping financial services, but often at the expense of jobs, raising questions about the future of work in banking.
