British banking giant Barclays plans to eliminate around 5,000 jobs, representing nearly 5% of its workforce, as it expands the use of artificial intelligence (AI) and automation to reduce operating costs and improve efficiency. The announcement came alongside the bank’s third-quarter financial results, which showed higher profits but weaker-than-expected performance in its investment banking business, particularly in fixed-income trading.
The job reductions are part of Barclays’ broader strategy to streamline operations, control expenses and improve returns. Around 60% of the planned cuts are expected to affect support functions, including technology and developer roles, indicating how automation and AI are increasingly influencing workforce decisions in the banking sector.
The bank had already eliminated approximately 1,000 positions during the first half of 2026, with the remaining reductions expected to be completed by the end of the year, according to reports citing the bank’s management. Barclays employed approximately 93,000 people globally at the end of 2025.
Chief Executive Officer C S Venkatakrishnan said the bank intended to deploy AI extensively but emphasised that technology was only one component of its wider efficiency programme. The strategy also involves simplifying organisational structures and reviewing operating costs to ensure resources are used more effectively.
The announcement coincided with Barclays reporting a 12% year-on-year increase in third-quarter pre-tax profit to £2.3 billion. However, the results exposed uneven performance across its businesses, with weaker fixed-income trading offsetting strong growth in equities trading.
Revenue from fixed-income, currencies and commodities trading fell 19% year-on-year to approximately £1.01 billion during the July-September quarter. The decline was attributed to subdued client activity in interest-rate and credit markets, alongside challenging market conditions during September.
Venkatakrishnan expressed disappointment with the performance of the bank’s fixed-income trading business, indicating that the division would receive management attention. The weakness also meant that the investment bank’s overall performance fell short of market expectations.
In contrast, Barclays’ equities trading business delivered a strong quarter, with revenue climbing 47% year-on-year. The growth helped offset some of the pressure caused by weaker bond-market trading. Despite the improvement, the investment bank reported total income of approximately £3.13 billion, below analysts’ expectations of around £3.3 billion.
The decline in fixed-income revenue reflects broader challenges confronting major financial institutions. Several large US banks, including JPMorgan Chase, Goldman Sachs and Bank of America, have also reported weaker bond-trading income amid volatile markets and changing interest-rate conditions.
Barclays is simultaneously intensifying its cost-control measures after facing scrutiny over rising expenses earlier in the year. The bank reported an additional £201 million in structural cost-saving measures during the third quarter and plans further reductions as it works towards its financial targets.
The latest restructuring also highlights a wider shift across the corporate sector, where companies are increasingly turning to AI-powered tools to automate tasks, improve productivity and redirect spending. While businesses see these technologies as an opportunity to strengthen efficiency, their growing adoption has raised concerns about the future of jobs, particularly in administrative, technical and support functions.
Despite the mixed quarterly performance, Barclays said it remained on course to meet its existing targets for 2026 and maintained confidence in its longer-term objectives for 2028. Its ability to control costs while sustaining revenue growth will remain an important test as it expands AI adoption and navigates uncertain financial-market conditions.
