Barclays Plans 5000 Job Cuts in AI Efficiency Drive

Barclays plans to eliminate 5,000 jobs, equivalent to about 5% of its workforce, as the British lender uses artificial intelligence and other technologies to reduce operating costs and simplify its business. The bank announced the proposed cuts in its third-quarter earnings statement on Thursday, October 22, 2026, with support functions expected to account for most of the reductions.

According to Barclays' earnings presentation, approximately 60% of the planned job cuts will affect support functions, including developer roles. The bank identified organizational simplification and efficiency gains driven by AI as key elements of its cost-reduction efforts.

Barclays said in its earnings statement that it was "structurally reducing the cost base to generate capacity for investment." The planned workforce reductions form part of the lender's broader effort to streamline operations while creating room for further investment.

The bank's third-quarter pretax profit increased 12% year over year to £2.3 billion ($3.1 billion), matching forecasts compiled by LSEG. However, group income reached £7.4 billion, falling short of analysts' expectations of £7.61 billion.

Net interest income remained broadly unchanged at £3.91 billion during the quarter. Barclays' Common Equity Tier 1 capital ratio, a measure of its financial resilience, declined slightly to 14.2% from 14.3% at the end of the second quarter.

The lender's return on tangible equity also fell to 11.7%, compared with 16.1% in the previous quarter. The figures indicate that the bank recorded higher annual pretax profits while several other financial performance measures weakened compared with the preceding quarter.

Barclays shares traded almost 1% lower by 8:50 a.m. in London on Thursday, equivalent to 3:50 a.m. Eastern Time, less than an hour after the trading session began.