Barclays cuts about 5,000 jobs as technology and AI take over work

The quarter in numbers. Barclays' income rose 3% to £7.4bn. Return on tangible equity (RoTE, how much the bank earns on each pound of its own money) rose to 11.7% from 10.6% a year earlier. Equities trading brought in 47% more, while bonds, currencies and commodities trading brought in 19% less. The BBC says profit came in slightly below analysts' forecasts.

How the bank explains the cuts. The report calls it technology-enabled staff reductions: the bank wants a lower fixed cost base and room for new investment. It spent £201m on such measures in the third quarter and plans about £300m more in the fourth. It expects total costs of about £18.5bn for 2026.

Who is affected. According to the BBC, most cuts fall on operational and functional roles, with about 60% in support functions, including developers. The UK retail bank is hit most, but the investment bank is affected too.

What the boss says. C. S. Venkatakrishnan told the BBC that most of the savings come from heavy investment in technology. AI matters and may matter more in future, he said, but for now it is "the icing on the cake, it's not the cake", because the infrastructure has to be built first.

حقائق مؤكدة

• In Q3 2026 Barclays' profit before tax rose 12% to £2.3bn and income rose 3% to £7.4bn.^[1][2]
• Barclays announced a share buyback of up to £500m, bringing distributions so far this year to £2.8bn, up 46% year on year.^[1]
• Quarterly RoTE was 11.7% versus 10.6% a year earlier, with a CET1 capital ratio of 14.2%.^[1]
• Equities income rose 47% year on year, while FICC (bonds, currencies and commodities) fell 19%.^[1]
• The bank is cutting costs through technology-enabled staff reductions: £201m on such actions in Q3 and about £300m planned in Q4.^[1]
• Barclays is cutting around 5,000 staff, 5% of its global workforce: 1,000 posts already closed and 4,000 more by the end of the year.^[2]
• About 60% of the cuts will fall within support functions, including developers.^[2]
• The chief executive called AI "the icing on the cake, it's not the cake", saying the infrastructure must come first.^[2]

التبعات

• مؤكدAbout 5,000 Barclays employees worldwide will lose their jobs by the end of 2026.
• قراءتناOther big banks may announce similar cuts and point to technology and AI.
• قراءتناOffice and support roles in finance will feel automation first.

لا يزال مجهولًا

• Which countries and offices the remaining 4,000 cuts will hit.
• How much of the saving comes from AI and how much from other technology.
• Whether more cuts follow in 2027.

من يتأثر

United Kingdom, Worldwide. Bank and office workers, developers, holders of UK bank shares

المصادر

1. Barclays: Barclays PLC Q326 Results Announcement 22 أكتوبر 2026 · رسمي
2. BBC News: Barclays cutting 5,000 jobs as it increases reliance on AI 22 أكتوبر 2026 · إعلام