Thousands of Barclays employees face job losses as the British banking giant prepares to eliminate about 5,000 positions worldwide by the end of 2026.
The BBC reported on Thursday, October 22, that the cuts, affecting roughly 5% of the bank’s global workforce, come as Barclays invests in artificial intelligence and other technology to reduce operating expenses.
CNBC reported that the company confirmed the plans on Thursday, October 22, alongside its third-quarter financial results, which showed higher profits despite disappointing performance in parts of its investment banking business.
According to Reuters, Barclays has already eliminated about 1,000 positions, with another 4,000 expected to disappear before the year ends.
Which Barclays Employees Will Be Affected by Layoffs?
The planned reductions will primarily affect employees working in support and operational functions, including software development.
According to The Guardian, Barclays Chief Financial Officer Anna Cross told reporters that approximately 60% of the workforce reductions would involve support roles.
The layoffs are part of the bank’s broader effort to simplify operations and reduce fixed costs.
Barclays has not provided a complete breakdown of affected departments or confirmed how many positions will be eliminated in individual countries.
The bank is approaching the end of a three-year cost-cutting program focused heavily on its U.K. retail operations, although its investment banking business is also affected.
Barclays Expands Artificial Intelligence as Thousands Face Job Cuts
Barclays executives said increased investment in technology has helped the company identify productivity opportunities.
Group Chief Executive C.S. Venkatakrishnan explained that AI would contribute to those changes but was not the only factor driving the restructuring.
“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,” he said, as reported by the BBC.
The bank has been modernizing existing systems while introducing technology designed to make everyday operations more efficient.
However, it remains unclear precisely how many positions are being eliminated as a direct consequence of AI adoption.
Barclays Announces Layoffs Despite Rising Quarterly Profits
The job cuts come as Barclays reported a 12% increase in third-quarter pretax profit to approximately £2.3 billion, or $3.08 billion, per Yahoo Finance.
Despite that growth, the results fell slightly below analysts’ expectations. The bank’s fixed-income trading division struggled, with revenue declining 19% from the previous year.
Venkatakrishnan acknowledged the disappointing performance in rates and credit products. “I am disappointed, and you can be sure this will get my attention,” he said.
Barclays also recorded £201 million in restructuring expenses during the quarter, per The Guardian.
Its shares fell approximately 2.5% in early trading following the announcement.
Barclays Joins Other Major Banks in Cutting Jobs
Barclays is not the only international lender preparing significant workforce reductions. Australia’s National Australia Bank recently announced plans to eliminate up to 2,500 positions over the next 12 months, Reuters reported on October 19.
Both banks are seeking lower operating costs while investing in technology and simplifying internal processes.
For Barclays employees, the immediate concern is the remaining 4,000 planned job cuts and which departments will be affected before December.
The company has not announced a detailed timetable for individual layoffs.
Barclays to Cut 5,000 Jobs by Year-End as CEO Calls AI ‘Icing on the Cake’