British banking group Barclays is expected to cut around 5,000 jobs by the end of 2026 as investments in technology and artificial intelligence (AI) help streamline its operations.
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The planned reductions represent approximately 5% of the bank’s global workforce, which stood at around 93,000 employees at the end of 2025.
Most of the job cuts are expected to affect operational and functional roles across the organisation. Around 1,000 positions were eliminated during the first half of 2026, with the remaining reductions planned for the second half of the year.
According to the bank’s leadership, the changes are part of a broader effort to improve efficiency through technology upgrades, simplified processes and the adoption of AI.
Barclays Says Technology Investment Is Driving Job Cuts
Group Chief Executive CS Venkatakrishnan, widely known as Venkat, attributed the efficiency gains to technology investments made over several years.
He said the bank had been modernising its platforms, integrating its systems and simplifying processes to improve operational performance.
These changes have enabled Barclays to reduce the number of employees required for certain functions, including some development roles.
Venkat said AI was playing a role in improving efficiency and could become more important in the future. However, he stressed that modern technology infrastructure was necessary to obtain the full benefits of AI.
He described AI as “the icing on the cake”, explaining that investments in underlying systems and infrastructure were essential to making the technology effective.
Bank Reports Higher Profits and Major Cost Savings
The job reductions come as Barclays approaches the end of a three-year strategy focused on improving performance, controlling costs and strengthening its technology capabilities.
During the third quarter, the bank recorded approximately £200 million in structural cost-saving measures, contributing to around £600 million in savings during the year, according to the report.
The savings were roughly double the amount the bank had expected to achieve earlier in the year.
Most of the cost reductions came from Barclays’ UK retail banking business, although its investment banking division also contributed.
The bank planned to achieve a further £300 million in savings during the final three months of 2026.
Meanwhile, Barclays reported a pre-tax profit of £2.3 billion for the three months ending in September, representing a 12% increase compared with the same period a year earlier.
Income increased across its UK retail and corporate banking businesses, wealth management division and investment bank.
AI Reshapes Banking Operations
Barclays’ plans highlight how major financial institutions are using technology to reduce operating costs and improve productivity.
Although AI is contributing to more efficient processes, Venkat indicated that broader technology modernisation and simpler systems were responsible for much of the efficiency achieved so far.
The expected job reductions reflect the combined impact of these changes rather than AI adoption alone.
Barclays Chief Comments on Possible UK Bank Tax Changes
The bank’s financial results also come amid speculation that the UK government may increase taxes on banks to raise additional revenue for the Treasury.
Asked about the possibility of higher bank taxes, Venkat reiterated his concerns about the UK banking sector carrying a higher tax burden than banks in some other countries.
He said Barclays already generated a significant portion of its earnings outside the UK and described the potential financial impact as manageable.
However, he emphasised that the issue also involved proportionality and the signal that tax policy sends to financial markets.
Venkat said he respected the Chancellor’s responsibilities and supported the government’s role in making fiscal decisions.
