Barclays announces 5,000 job cuts by end of 2026 alongside 12% Q3 profit rise

Barclays sets 5,000 redundancies as part of AI-linked cost plan

Barclays said it plans to cut roughly 5,000 jobs by the end of 2026, equivalent to about 5% of its total workforce, as part of a cost-saving drive that executives tied to investments in technology and artificial intelligence. The bank reported the move alongside third-quarter profit of £2.3 billion, up 12% from the same period a year earlier. The announcement came as the bank approached the close of a three-year strategy that combined cost reductions with expanded technology capabilities.

Phased reductions weighted to operational and functional roles

The lender said 1,000 positions had already been cut, with the remaining 4,000 to follow by the end of 2026. Approximately 60% of the job losses are expected to fall in operational and functional roles, including software developer positions, with most reductions concentrated in the bank's home market but affecting staff globally.

Executives link headcount plan to prior technology investment

Group Chief Executive CS Venkatakrishnan said the cuts reflect investments Barclays has made in technology over several years and continues to make, and that those investments are "driving the bulk of the efficiency gains that you've seen so far." He described AI as "icing on the cake" rather than the primary driver, saying the bank had focused first on infrastructure modernization and was applying AI where that infrastructure was already modern. A Barclays spokesperson said the bank was "positioning Barclays for the future, building the workforce and skills needed to deliver our strategy and meet the evolving needs of our customers and clients."

Cuts announced a week before the UK Autumn Budget

The disclosure came less than a week before Chancellor John Healey is scheduled to deliver the Autumn Budget, described as the first under Andy Burnham's Labor government. The timing was noted without linking the two decisions.