London, Oct 24:
British banking major Barclays plans to cut around 5,000 jobs, or approximately 5% of its workforce, by the end of 2026 as it increasingly adopts artificial intelligence (AI) and other technologies to improve efficiency, reduce costs and boost profitability.
The announcement places Barclays among a growing number of major financial institutions restructuring their workforces as AI and automation change the way banking operations are carried out. The planned reductions come amid concerns that technology could increasingly replace human involvement in several areas, including banking, software development, legal services and administrative operations.
Around 60% of the job cuts at Barclays are expected to affect employees in support functions, including software developers. The bank has already eliminated about 1,000 positions, with the remaining reductions expected to be completed by the end of the year. The move forms part of a broader effort to simplify organisational structures and improve productivity through technology.
Barclays chief executive C S Venkatakrishnan said AI would play an important role in the bankās future operations and that the lender intended to deploy the technology on a larger scale. However, he emphasised that AI was only one component of its efficiency strategy, describing it as āthe icing on the cake, not the cakeā. His remarks indicated that the workforce changes were also linked to years of investment in technology and improvements to the bankās operational infrastructure.
The job reductions were announced alongside the bankās third-quarter financial results. Barclays reported a 12% increase in quarterly profit to Ā£2.3 billion compared with the corresponding period last year, although the figure fell short of analystsā expectations. Weak performance in fixed-income trading weighed on the results, even as the bank recorded stronger income from equities trading.
The lender is also pursuing a wider cost-reduction programme. Barclays said its efficiency measures were expected to generate savings of more than Ā£1.1 billion in 2027. The strategy includes the use of technology to reduce operating expenses and improve returns. The bank has also been restructuring its operations as it seeks to control costs while maintaining growth.
The development reflects a wider shift across the global banking sector. Standard Chartered announced plans earlier this year to reduce thousands of jobs in support functions as part of its restructuring programme. Financial institutions are increasingly exploring AI applications in customer service, software development, data processing, compliance and other back-office activities.
The growing adoption of AI has intensified concerns about employment prospects, particularly in roles involving repetitive or process-driven tasks. While banks argue that technology can improve productivity and allow employees to concentrate on more complex work, the Barclays announcement highlights the possibility that some existing positions may disappear as automated systems become more capable.
The impact of AI on employment remains a major concern for workers and policymakers, particularly in financial centres such as London, where banking and related professional services account for a significant share of economic activity. Barclaysā planned reductions will be closely watched as investors assess whether increased technology spending can translate into sustained savings and stronger profitability.