Barclays to cut about 5,000 jobs as it leans on AI to lower costs
The British bank is cutting around 5% of its workforce, mainly in support functions. Quarterly profit rose 12% but came in slightly below expectations.
Archive image · Photo: David Jones from Isle of Wight, United Kingdom / Wikimedia Commons, CC BY 2.0 (cropped and resized)
British bank Barclays plans to cut around 5,000 jobs by the end of 2026, roughly 5% of its global workforce. About 1,000 roles were already eliminated in the first half, City AM reported. The cuts mainly affect support and administrative functions, including developers. According to news agency dpa-AFX, the move reflects the growing use of artificial intelligence.
Chief Executive C.S. Venkatakrishnan said the roles were spread across the bank and related mainly to operational functions. AI, he said, was "the icing on the cake, not the cake." Barclays aims to save more than 2 billion pounds in total from 2026 to 2028 and lift its return on tangible equity above 14% by 2028, from 13.8% so far this year.
Third-quarter pre-tax profit rose 12% to 2.3 billion pounds, against an average analyst forecast of 2.4 billion. Investment banking income of 3.1 billion pounds missed estimates: equities trading jumped 47%, while fixed income fell 19%. The bank also announced a 500 million pound share buyback.