Barclays plans to cut 5,000 jobs as it leans on AI to trim costs

Barclays plans to cut about 5,000 jobs, and support functions, including developers, are expected to bear the largest share of the reductions.

The British bank says the cuts are part of an effort to simplify its organization and lower fixed costs as it rolls out artificial intelligence and other technology.

The cuts represent roughly 5% of Barclays’ global workforce. They are expected to wrap up by the end of 2026.

The numbers behind the cuts

The job reductions are not starting from zero. Barclays had already closed about 1,000 positions in the first half of 2026, leaving roughly 4,000 more to go.

Around 60% of the cuts will land on support functions, a category that includes developer roles.

The announcement came alongside the third-quarter results. Barclays reported pre-tax profit of £2.3 billion for the quarter, up 12% year-over-year. Group income reached £7.4 billion.

But the bank fell short of some analysts’ income expectations, with fixed-income trading proving a weak spot. Fixed-income, currencies and commodities revenue fell 19% to £1.01 billion.

Shares dipped in early trading after the announcement.

AI is the headline, infrastructure is the story

CEO C.S. Venkatakrishnan acknowledged that AI plays a role in lifting productivity. But he argued that the real efficiencies come from deep investment in the bank’s technology infrastructure and organizational simplification, not from AI on its own.

The cost actions are specific. Barclays booked £201 million in structural cost reductions in the third quarter alone, with plans for another £300 million in the fourth quarter.

A broader shift across Wall Street and the City

Barclays is not alone in looking at AI as a cost lever. Goldman Sachs and JPMorgan have also pursued AI-driven efficiency efforts as pressure to reduce operating costs builds across the industry.

What this means

For investors, the third-quarter profit rise shows the bank can grow earnings, but the miss on income estimates shows it cannot fully control the top line. If Barclays delivers its planned cost reductions, it can protect margins even in quarters when fixed-income desks stumble.

The initial share dip suggests the market is not yet giving Barclays full credit for the plan. Investors will likely want evidence that the £300 million fourth-quarter cost-action target is met, and that operations hold up as the remaining 4,000 roles are phased out.