Barclays to cut 5,000 jobs as AI drives efficiency gains, bank says

CEO calls AI the 'icing on the cake'; union urges a fairer bank tax

By LineZotpaper

Published22 October 2026

Updated22 October 2026

Read Time2 min

Sources10 outlets

Barclays is axing about 5,000 jobs, roughly 5% of its 93,000 global workforce, as part of cost-cutting plans the bank says are being driven partly by advances in artificial intelligence. The lender also announced a further £500m for shareholders after quarterly pre-tax profits rose 12% to £2.3bn, just days before Chancellor John Healey is due to unveil a possible bank tax hike in the budget.

Barclays has confirmed it will cut about 5,000 jobs, or roughly 5% of its 93,000 global staff, with executives saying around 1,000 workers have already been let go since the start of the year. The reductions are part of plans to save more than £1.1bn in 2027.

Chief financial officer Anna Cross told reporters the cuts were expected to hit around 5,000 full-time employees, with about 60% of the group actions relating to support functions, "including fewer developers, as AI makes our people more productive."

Asked how many of the cuts were directly linked to AI, chief executive CS Venkatakrishnan said the bank had been making "deep investments" in technology and simplifying its processes, which he said was "driving the bulk of the efficiency gains that you've seen so far." He called AI the "icing on the cake" to modernising the bank's technology, adding: "We have been focusing on the infrastructure build, and where the infrastructure is modern, we've been applying AI."

The move follows Standard Chartered's announcement of more than 7,000 job cuts over four years, including 15% of its back-office roles by 2030, as it ramps up AI use.

Barclays reported £2.3bn in pre-tax profits for July to September, up 12% from £2.1bn a year earlier, and announced a £500m share buyback, bringing total returns to shareholders since January to £2.8bn. Net interest income at its UK retail operations rose 6% to £2bn.

The news lands ahead of the 28 October budget, with Chancellor John Healey expected to raise banks' taxes to help fund cost-of-living support under Andy Burnham's government. The Trades Union Congress, which has campaigned for a higher bank tax, said lenders should contribute more. TUC general secretary Paul Nowak said big banks' windfall profits have been "underpinned by mortgage misery for millions," adding that Britain's big four banks have made £200bn in profit since 2021 and "can, and should, pay more tax."

Analysis

Why This Matters

The cuts mark one of the largest job reductions at a major UK bank and signal how AI is reshaping banking employment, with executives explicitly linking productivity gains to the technology.
Barclays' strong profits and shareholder payouts arrive just before a budget where the government is weighing a bank tax to fund living-cost support, making the lender's returns a political flashpoint.
The trend may extend beyond Barclays, following Standard Chartered's similar AI-linked cuts, raising questions about the scale of back-office job losses across the sector.

Background

Barclays is one of Britain's big four banks, with roughly 93,000 staff globally. Like its peers, it has been modernising legacy technology, a process executives say now enables AI tools to be applied to support functions such as software development. Campaigners have long argued that UK banks earn outsized profits from net interest income, the gap between loan charges and deposit payments, which has widened as interest rates have risen.

Key Perspectives

Barclays management: The bank frames the cuts as efficiency gains from technology modernisation, with AI playing a supporting rather than primary role. CFO Anna Cross notes 60% of actions fall in support functions, while CEO CS Venkatakrishnan points to "deep investments" in infrastructure as the main driver, with AI the "icing on the cake". Trades Union Congress: Paul Nowak argues Barclays' bumper profits are part of a broader pattern, with big banks thriving on mortgage misery while households struggle. He contends the banks can afford to pay more tax. Chancellor John Healey: The government aims to raise revenue for cost-of-living support while also backing business, promising to cut the "cost of business" and support entrepreneurs.

What to Watch

Whether the 28 October budget delivers a bank tax hike and how the big four respond.
The pace of further job reductions at Barclays, and whether other UK lenders follow Standard Chartered and Barclays in AI-driven cuts.
Any reaction from the bank to the TUC's claim that the big four have made £200bn in profit since 2021.

Sources

Barclays cutting 5,000 jobs as it increases reliance on AI · BBC News
Barclays to slash 5,000 jobs in AI efficiency push · US Top News and Analysis
Barclays cutting 5,000 jobs as it increases reliance on AI · BBC News
Barclays to cut 5,000 jobs as bank’s bosses hail AI productivity advances · Business | The Guardian
Barclays cuts 5,000 jobs as AI makes work more efficient · RTÉ News
Barclays cuts: Scottish job fears as banking giant’s AI push sees 5,000 jobs slashed · The Scotsman
Barclays to cut 5,000 jobs as bank’s bosses hail AI productivity advances · World news | The Guardian
Barclays to cut 5,000 staff by end of 2026 after increasing use of AI · STV News
Barclays cuts 5,000 jobs as profits jump ahead of looming bank tax; French bond yields hit fresh 24-year high – business live · Business | The Guardian
Barclays to axe 5,000 jobs in huge blow to City as AI replaces workers · The Standard London

Checked

12 claims in this story checked against 1 source: 10 supported.

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Partly supportedVenkatakrishnan said technology investment and process simplification were “driving the bulk of the efficiency gains”.Business | The Guardian: ““That is driving the bulk of the efficiency gains that you’ve seen so far. AI has an important role to play and may have a more important role to play in the future,””
Partly supportedAI is driving Barclays’ efficiency gains.Business | The Guardian: “When asked how many of the total job cuts would be directly linked to advances in AI, the chief executive, CS Venkatakrishnan, said the bank had been making “deep investments” in technology and simplifying its processes. “That is driving the bulk of the efficiency gains that you’ve seen so far. AI has an important role to play and may have a more important role to play in the future,””
SupportedBarclays plans to cut about 5,000 jobs, around 5% of its 93,000 global staff.Business | The Guardian: “The job cuts will mean losing about 5% of the bank’s 93,000 global staff, with executives confirming they had already cut 1,000 workers since the start of the year.”
SupportedVenkatakrishnan called AI the “icing on the cake” to modernising the bank’s technology.Business | The Guardian: “Venkatakrishnan said the bank had been making “deep investments” in technology and simplifying its processes. “That is driving the bulk of the efficiency gains that you’ve seen so far. AI has an important role to play and may have a more important role to play in the future,” Venkatakrishnan said, calling AI the “icing on the cake” to modernising the bank’s technology.”
SupportedExecutives said about 1,000 workers had already been cut since the start of the year.Business | The Guardian: “The job cuts will mean losing about 5% of the bank’s 93,000 global staff, with executives confirming they had already cut 1,000 workers since the start of the year.”
SupportedThe cuts are part of plans to save more than £1.1bn in 2027.Business | The Guardian: “The bank’s chief financial officer, Anna Cross, told reporters on Thursday that the job cuts were part of plans to save more than £1.1bn in 2027.”
SupportedAbout 60% of the group actions relate to support functions, including fewer developers as AI makes workers more productive.Business | The Guardian: ““These actions involve an expected reduction of circa 5,000 full-time employees. Around 60% of the group actions relate to support functions, including fewer developers, as AI makes our people more productive.””
SupportedBarclays reported £2.3bn in quarterly pre-tax profits, up 12% from £2.1bn a year earlier.Business | The Guardian: “The lender said it logged £2.3bn in pre-tax profits over the July to September quarter, up 12% from £2.1bn during the same period last year.”
SupportedBarclays announced a £500m share buyback, bringing shareholder returns since January to £2.8bn.Business | The Guardian: “Venkatakrishnan said he would be passing more cash to investors through a £500m share buyback, taking the total amount given to shareholders since January – through buybacks and dividends – to £2.8bn.”
SupportedNet interest income at Barclays’ UK retail operations rose 6% to £2bn.Business | The Guardian: “Barclays’ strong performance included a 6% rise in net interest income at its UK retail banking operations, to £2bn.”
SupportedStandard Chartered announced plans to cut more than 7,000 jobs over four years, including about 15% of its back-office roles by 2030, as it ramps up AI use.Business | The Guardian: “The news comes months after another UK-headquartered bank, Standard Chartered, announced plans to cut more than 7,000 jobs over the next four years as it ramps up the use of AI. It will mean slashing about 15% of its back-office roles by 2030.”
SupportedTUC general secretary Paul Nowak said Britain’s big four banks had made £200bn in profit since 2021 and “can, and should, pay more tax.”Business | The Guardian: “Britain’s big four banks have made £200bn in profit since 2021. They can – and should – pay more tax.”