Barclays is eliminating roughly 5,000 positions while reporting higher quarterly profits and expanding its use of artificial intelligence.
Barclays is eliminating roughly 5,000 jobs as part of an efficiency drive linked to investments in artificial intelligence, bank leaders announced on Thursday. The planned reductions represent approximately 5% of the lender’s 93,000 global workforce, with 1,000 roles already removed since the start of the year.
The Guardian reported that the cuts form part of an effort by Barclays to reduce annual spending by more than £1.1 billion in 2027. Chief Financial Officer Anna Cross stated that around 60% of the planned reductions target support operations, including software developers, pointing out that new automated systems allow staff to accomplish more. According to TechRadar, the remaining 4,000 job cuts are expected to take place before the end of the year, with cuts touching operational and functional positions in the UK retail banking unit as well as investment banking.
How automation affects roles across the bank
When asked how many layoffs stem directly from AI tools, Chief Executive CS Venkatakrishnan said the bank has directed heavy investments into upgrading technology and streamlining workflows. Those upgrades, he explained, are generating most of the efficiency improvements, describing AI as an additional enhancement to modernizing systems. “We have been focusing on the infrastructure build, and where the infrastructure is modern, we’ve been applying AI,” Venkatakrishnan said.
A bank spokesperson stated that the lender is reshaping its operations to develop the capabilities required for its long-term strategy and the shifting demands of customers, while aiming to assist employees in career development. Barclays is not alone among British lenders in trimming staff alongside automation projects. Standard Chartered announced plans earlier this year to cut more than 7,000 jobs across four years as it expands AI usage, a move aimed at eliminating about 15% of its back-office staff by 2030.
Rising profits and shareholder payouts
The workforce reductions arrived alongside a jump in quarterly financial results. Barclays logged £2.3 billion in pre-tax profits for the third quarter spanning July through September, marking a 12% increase from £2.1 billion during the same period a year earlier. TechRadar noted that the quarterly profit equals roughly $3 billion.
Following the profit gains, Barclays disclosed plans to return another £500 million to investors through a share buyback program. That decision lifts total shareholder payouts through dividends and buybacks to £2.8 billion since January. Strong earnings were aided by the bank’s UK retail division, where net interest income climbed 6% to reach £2 billion. Net interest income measures the difference between what the bank collects on loans and what it pays out on deposits, an amount influenced by interest rates that have climbed as the Iran war increased inflation expectations.
Mounting pressure over upcoming bank taxes
The lender’s profit growth has intensified scrutiny ahead of the UK government’s autumn fiscal plans. Chancellor John Healey is scheduled to present the national budget on 28 October, where he is set to announce a tax increase on banks as Andy Burnham’s government seeks money to finance programs that assist households with the cost of living.
Union officials have cited the earnings as justification for larger tax contributions from the financial industry. Trades Union Congress General Secretary Paul Nowak argued that the strong profits across major lenders have coincided with elevated mortgage expenses for British households. Nowak pointed out that Britain’s four largest banks have accumulated £200 billion in profits since 2021, saying lenders can and should pay more tax during a period of high household energy costs. Healey told The Times that the upcoming budget aims to back profitable businesses and entrepreneurs while lowering business operating costs.
