Barclays to sack 5,000 workers as AI boost operations

Barclays has announced plans to cut about 5,000 jobs this year as the British lender steps up the use of artificial intelligence (AI) and other technologies to reduce costs and improve profitability.

The planned layoffs, representing about five per cent of its workforce, were disclosed on Thursday, October 22, 2026, as Barclays reported a third-quarter profit of £2.3 billion ($3.08 billion), a 12 per cent increase from the same period last year.

“I am disappointed, and you can be sure this will get my attention,” CEO C.S. Venkatakrishnan said about the bank’s traditional ​strength of fixed income trading, blaming a volatile quarter and weak trading in rates and credit products in particular.

The bank ​said it had taken a further £201 million in “structural cost actions” in the third quarter, part of its longer-term ⁠plan to reduce expenses like staff costs through greater use of technology.

Barclays CFO Anna Cross told Reuters that about 60% of the overall job cuts will impact staff in support ​functions such as developers.

Cross added that 1,000 roles have already gone, with the remainder to be cut by the end of the year.

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“The cuts illustrate just how significantly AI and automation could reshape the banking industry over the next few years,” financials analyst at fund management ​business Quilter Cheviot, Will Howlett, said.

Companies worldwide including tech giant Microsoft and HSBC have announced layoffs this year, as automation increasingly impacts employment.

Barclays shares slipped 0.1%, ​outperforming other lenders. The bank’s shares have fallen 12% so far this year, in line with European peers which have sold off after years of rallying ‌as higher ⁠interest rates lifted profits.

Shore Capital said in a statement that the results were weaker than expected due to the disappointing performance by the investment bank.