Barclays to cut 5,000 jobs amid AI and automation shift

Barclays is implementing a significant workforce reduction plan, aiming to cut approximately 5,000 jobs—roughly 5% of its global headcount—by the end of 2026. The bank has already eliminated about 1,000 positions during the first half of the year, with the remaining 4,000 cuts expected to follow as part of a broader cost-reduction and technology modernization strategy.

The restructuring is driven by the integration of artificial intelligence and automation to boost productivity and simplify operations. Approximately 60% of the job cuts will target support functions, including software developers. This move comes despite a 12% rise in quarterly pre-tax profit to £2.3 billion, though revenue in the fixed income, currencies, and commodities division saw a 19% decline.

Barclays' decision reflects a wider trend in the financial services sector. Other major institutions have announced similar shifts, including Standard Chartered, which plans to reduce over 7,000 roles by 2030, and Visa, which recently announced a 7% global workforce reduction. The industry-wide movement highlights a shift in demand toward technology, cybersecurity, and data analysis as routine administrative and processing roles are increasingly automated.