British banking giant Barclays has announced plans to cut approximately 5,000 jobs, representing about 5% of its global workforce, as the company accelerates its use of artificial intelligence and other technologies to improve efficiency and reduce costs.
The job reductions were revealed alongside the bank’s third-quarter earnings report. Barclays said the cuts are part of a broader strategy aimed at streamlining operations and creating more capacity for future investments. According to the bank, many of the workforce reductions will stem from “organizational simplification and technology change efficiency driven by AI.”
Approximately 60% of the planned cuts are expected to affect support functions, including software development and other operational roles. Barclays Chief Financial Officer Anna Cross said the bank has already eliminated around 1,000 positions, with the remaining reductions expected to be completed before the end of 2026
The move highlights a growing trend across the financial industry, where banks are increasingly adopting AI-powered tools to automate routine tasks, boost productivity, and lower operating expenses. Barclays Chief Executive C.S. Venkatakrishnan emphasized that the layoffs are tied to years of investment in technology infrastructure, describing AI as an important part of the bank’s future strategy.
The announcement came as Barclays reported third-quarter pretax profit of $3.1 billion, up from the same period a year earlier. However, the results fell short of some market expectations due to weaker performance in the bank’s fixed-income trading business.
Despite the profit increase, Barclays continues to pursue aggressive cost-cutting measures. The bank has already recorded hundreds of millions of pounds in restructuring and efficiency-related actions this year, with management aiming to improve profitability and long-term returns for shareholders.
Industry analysts say the decision could be an early indicator of how AI adoption may reshape employment across the banking sector. As financial institutions invest more heavily in automation, back-office and support roles are increasingly being targeted for efficiency improvements.
Barclays currently employs roughly 93,000 people worldwide, meaning the planned job cuts will be among the largest workforce reductions undertaken by a major European bank this year.
The announcement underscores the growing influence of artificial intelligence in corporate decision-making, as companies seek ways to balance rising technology investments with efforts to control costs and maintain profitability.