British banking giant Barclays plans to cut around 5,000 jobs by the end of 2026 as it expands its use of artificial intelligence (AI) and other technologies to reduce costs and improve efficiency.
The planned reductions represent about five per cent of the bank’s global workforce of approximately 93,000 employees. Around 1,000 jobs had already been eliminated in the first half of the year, with a further 4,000 expected to go before December ends.
According to Reuters, about 60 per cent of the cuts will affect support functions, including software developers, as technology enables employees to perform certain tasks more efficiently.
Barclays Chief Executive C.S. Venkatakrishnan said the reductions reflected investments the bank had made in technology over several years. He described AI as an important part of the bank’s efficiency strategy, while noting that the technology depended on the underlying infrastructure.
The job cuts come as Barclays seeks to control operating expenses and strengthen profitability. The bank reported third-quarter profit of £2.3 billion, up 12 per cent from a year earlier, although the figure fell short of analysts’ expectations.
The announcement adds to growing concerns about AI’s impact on employment in the financial services industry, where banks are increasingly adopting automation to streamline administrative, operational and technical work.
While Barclays is using technology to improve productivity, the scale of the planned reductions highlights the potential consequences for workers as financial institutions reshape their operations around AI.