Barclays To Cut 5,000 Jobs This Year In Push Towards AI

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Barclays plans to cut 5,000 jobs by the end of the year, with 1,000 roles already removed and 4,000 further cuts planned. The bank links the move to cost reduction and efficiency, including wider use of AI, but says AI is only one part of its approach. The UK share of the cuts has not been disclosed.

Barclays plans to cut 5,000 jobs by the end of this year, with 1,000 roles already removed and 4,000 further cuts planned, as the bank pursues lower costs and wider use of artificial intelligence. The reductions are expected to affect about 5% of its global workforce; the bank has not said how many will be in the UK.

Barclays said 3,000 of the planned job cuts will be in support roles, including software developers. The source report does not break down the remaining 2,000 roles by function, location or timing. The bank is nearing the end of a three-year cost-cutting drive, and the job reductions add to that effort.

Chief executive CS Venkatakrishnan, known as Venkat, told analysts that AI is being used at scale but is not the sole explanation for the changes. He described it as “the icing on the cake, it is not the cake”. Barclays expects to deliver at least £1.1 billion in efficiency savings next year, and Venkat said he would push to secure further gains from adopting AI.

The bank cited technology changes already made to customer services and operations. Venkat said online mortgage applications had been reduced from 45 minutes to 15 minutes, and that technology meant each branch needed 10% fewer staff. Those examples indicate how the bank says technology can change staffing needs, but Barclays did not say that these specific changes account for the announced 5,000 cuts.

How AI Fits Barclays’ Cost Drive

The planned cuts show how a large bank is combining workforce reductions, process changes and technology investment as it seeks to improve efficiency. The scale matters to employees and communities where Barclays operates, while the inclusion of software developers among support roles suggests the cuts are not confined to routine administrative work.

For customers, the bank’s mortgage-processing example points to a possible benefit in faster service. But the announcement does not establish that the job cuts themselves will produce faster or better customer outcomes. The bank has not set out which services could change, whether customers will see further automation, or how it will manage service levels as staffing falls.

The cuts are also being announced alongside strong reported results and shareholder distributions. Barclays recorded £2.3 billion in pre-tax profit for the three months to September 30, up 12% from £2.1 billion a year earlier, and announced a new £500 million share buyback. The figures frame the cost drive as a strategic choice by a profitable bank, rather than a response to losses in that quarter.

Profits, Savings and Bank Taxes

Barclays reported that its UK net interest income rose 6% year on year to £2 billion in the third quarter. Net interest income measures the difference between what banks earn on loans and pay on deposits, and is one source of lender profitability. The report also said the investment bank generated £3.1 billion in income, around 48% of group revenue, with equities income up 47% to £689 million.

The bank’s results and workforce plans come amid debate over a possible increase in the banking surcharge. The source report said banks then paid a 3% surcharge on top of the 25% corporation tax rate, and that government plans were expected to raise the surcharge to 8%. These were reported as proposals ahead of a forthcoming Budget, not as a tax change already in force.

Barclays had also announced a £500 million share buyback, bringing distributions so far that year to £2.8 billion, 46% higher than the same period a year earlier, according to the report. Trade union leader Paul Nowak argued that banks should contribute more tax, while industry representatives warned that higher levies could affect investment and lending. These positions are competing claims about policy effects, not established outcomes.

““Barclays’ bumper profits aren’t an anomaly. All the big banks are doing exceptionally well at the same time.””

— Paul Nowak, general secretary of the Trade Union Congress

Where the Job Cuts Will Fall

Barclays has not disclosed how many cuts will be in the UK, which business areas will account for the remaining roles, or whether the 4,000 further reductions will happen evenly across the rest of the year. The report identifies 3,000 cuts in support roles, including software developers, but gives no full breakdown of locations, job grades or affected teams.

The bank has linked the broader cost and efficiency effort to AI, but the available details do not show how many of the 5,000 roles are being removed specifically because of AI, as opposed to other restructuring or process changes. Nor does the report explain how Barclays will measure the technology’s contribution to the targeted savings, or what safeguards and retraining support may be available to affected staff.

Effects on customers are also not yet established. Faster mortgage applications and reduced branch staffing were cited by the chief executive as examples of technology’s impact, not as a detailed forecast of service changes arising from this round of cuts.

The Year-End Cut Target

Barclays’ stated target is to complete the 5,000 job reductions by the end of the year. Further company disclosures will be needed to establish the final number, the geographic and business-area breakdown, and how the cuts relate to AI adoption and the bank’s efficiency plans.

Investors and employees will also be watching for updates on the expected £1.1 billion or more in efficiency savings next year and whether Barclays reports measurable gains from technology. The bank’s results and any subsequent staffing disclosures should clarify whether the savings target is being met, though the source report provides no schedule for further announcements.

The Budget debate on the banking surcharge is a separate issue that could affect the sector’s costs and lending decisions. The report described a proposed increase, so its final terms and any effects on Barclays, borrowers or savers remained unsettled at the time of publication.

Key Questions

How many jobs is Barclays planning to cut?

Barclays plans to cut 5,000 jobs by the end of the year. According to the report, 1,000 roles had already been removed and 4,000 more were planned.

Are all the job cuts because of AI?

The report links the cuts to a broader push for efficiency and increased AI use, but Barclays has not said how many roles are being removed specifically because of AI. Chief executive CS Venkatakrishnan said AI was “the icing on the cake, it is not the cake.”

Which Barclays roles are affected?

Barclays said 3,000 of the cuts will be in support roles, including software developers. The report does not identify the functions or locations for the other 2,000 roles.

How many cuts will be in the UK?

That has not been disclosed. Barclays’ plan covers about 5% of its global workforce, but the report gives no UK-specific number.

What savings is Barclays targeting?

Barclays expects to make at least £1.1 billion in efficiency savings next year. The report does not provide a breakdown of how much is expected to come from AI, job reductions or other changes.

Source: rss