Barclays to Cut Around 5,000 Jobs by End of 2026, Citing AI Efficiency

Barclays said on Thursday, 22 October 2026, that it will eliminate around 5,000 positions by the end of the year. The bank says the move is meant to streamline operations using technology, including artificial intelligence. It announced the decision alongside its third-quarter results.

What the bank announced

According to Euronews, Barclays plans to eliminate around 5,000 positions worldwide by the end of 2026. That is roughly 5% of its global workforce. The figure includes around 1,000 jobs that were already cut in the first half of the year.

About 60% of the reductions will hit support functions, developers among them. The bank says AI is making staff more productive. In its earnings presentation, it described the changes as “organisational simplification and technology change efficiency driven by AI”.

Third-quarter results

Profit attributable to shareholders came to £1.65 billion, compared with £1.46 billion a year earlier. Group income rose 3% to £7.37 billion. Income from equities jumped 47% year on year. The bank also announced a £500 million share buyback.

Barclays shares edged lower in London. Russ Mould of AJ Bell said the third-quarter results fell short of expectations and that the buyback did not entirely ease investors' disappointment. He added that costs rose across the wider group. According to Will Howlett of Quilter Cheviot, the investment bank was weaker, particularly in fixed income trading.

Analyst reaction

Howlett of Quilter Cheviot said the announcement shows the scale of the possible impact of AI and automation on banking. In his view, investment is reaching the point where fewer people are needed to run the business. The savings are expected to bring down costs and improve profitability.

According to Euronews, Howlett said the announcement illustrates just how significantly AI and automation could reshape the banking industry over the next few years.

Howlett also noted that the key question is whether Barclays can turn technology investment and a smaller workforce into sustainably lower costs without compromising growth. If it can, he said, there is still “considerable scope for improved returns”.

Clouds over the bank

Mould pointed to two “major clouds over the business”. The first is a widely expected increase in tax on the sector in next week's UK budget. The second is a reported probe into possible misrepresentation of risks in its private credit portfolio.

According to the Financial Times, cited by Euronews, the Bank of England is examining claims that Barclays understated risks linked to financing for private credit funds, which could have allowed it to hold less capital to cover potential losses. Barclays says its private credit exposure is treated in line with accounting and regulatory capital requirements.

What it means for jobs

The announcement is another case of a large financial institution tying job cuts directly to AI. According to the bank, around 60% of the cuts affect support functions, including developers. The source does not specify which roles make up the rest of the reductions. It also gives no breakdown of the cuts by country, so it is unclear how they will affect units outside the UK.