Barclays to cut about 5,000 jobs by year-end as AI lowers costs despite profit rise

Job cuts and timeline

Barclays said on Thursday, 22 October 2026, that it will cut about 5,000 jobs, or roughly 5% of its workforce, and it announced the plan alongside its third-quarter results. The group employed about 93,000 people worldwide at the end of 2025. Finance chief Anna Cross told journalists that 1,000 roles had already been eliminated, while the remaining 4,000 are to go by the end of the year. The bank presents the reductions as a structural cut to its cost base, made possible by technology. Barclays described the measures as additional steps that are already under way.

Which roles are affected

About 60% of the reductions fall on support and administrative functions, including software developers. Cross said artificial intelligence makes staff more productive, which means fewer developers are needed. Chief executive C. S. Venkatakrishnan said the bank is investing heavily in technology and simplifying how work gets done, and that this drives most of the efficiency gains. He described AI as playing an important role that could grow in future. The bank expects the measures to save more than £1.1bn in 2027, compared with an earlier expectation of £700m for that year.

Results and shareholder payouts

Third-quarter pre-tax profit rose 12% to £2.3bn compared with a year earlier, but it fell short of analyst expectations. Analysts pointed mainly to weaker bond trading, where income dropped 19% to £1bn, while Shore Capital analysts cited disappointing investment banking results. Venkatakrishnan called the performance in the bond business disappointing. The bank plans a further £500m payout to shareholders despite the job cuts, and it has returned £2.8bn since January through dividends and share buybacks. Richard Hunter of interactive investors said the shares had lost 20% over the past three months.

Sector context and scrutiny

Barclays follows a wider trend in the sector. Standard Chartered announced in May plans to cut more than 7,000 jobs by 2030, and it expects to replace about 15% of roles in internal administrative and processing areas with AI. The Unite union has long warned about job losses in banking caused by the use of AI. The Financial Times reported that the Bank of England is examining whether Barclays traders presented illiquid private credit exposures misleadingly, in a way that could understate risk. The banking sector is also waiting for the government budget, due in the week of 26 October 2026.